US Govt Asks MediaTek to Stop Supplying Chips to Huawei

Huawei lost its chip supply from TSMC due to US sanctions back in May. This forced the Chinese phone maker to switch its chip orders to another industry giant MediaTek. Huawei reportedly had a giant order for 5G chips in place with MediaTek as well.

However, newer reports show that the US is now trying to persuade MediaTek into reducing its supply to Huawei. A recent CSLA report shows that the US is attempting to hamper the Huawei’s business yet again. Qualcomm, on the other hand, is planning to supply the Chinese phone maker in the near future.

It is reportedly in talks with the US government to obtain a license to continue business with Huawei. Other major companies such as Google, Microsoft, and a plethora of others are looking to attain this license as well so they can recover their business relations. Qualcomm is hoping to receive the waiver license as early as Mid July. It is unclear when the other companies are likely to receive it.

Taiwanese chipmaker Mediatek was reached out for comment but the company denied being persuaded by the US and called the news baseless. The news is not yet confirmed, so we recommend taking this information with a pinch of salt. We will have to wait and see if Qualcomm steps up to supply Huawei or if Mediatek backs away.



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