On May 15th the U.S. Bureau of Industry and Security (BIS) announced that it would introduce new export controls to limit Huawei’s ability to use semiconductors containing U.S. technology and software to design and manufacture them abroad. As soon as the news came out, industry insiders expected that the development of Huawei’s chip factory, Hess, could be hampered, while MediaTek is expected to benefit.
However, according to the latest news, MediaTek because mobile phone chips use TSMC advanced process, I am afraid will also be affected by the ban, so can not benefit from Huawei transfer orders. In addition, MediaTek’s share price hit the market in early trading this morning, the market once thought it would benefit from the U.S. ban on Huawei, but the rise and fall of a glimpse, the share price immediately abated, the share price rose 7 percent by midday.
It is reported that due to the Ban in the United States, some people believe that Huawei will be through the transfer of a single media tekatos to maintain the existing market share. However, industry insiders point out that MediaTek’s 5G chips, such as the 1000 and Tianxuan 800 series, are all made using TSMC, and under the basis of using equipment and technology originating in the United States, MediaTek has limited space for Huawei to transfer orders. It remains to be seen whether MediaTek will be able to benefit directly.