Massive Mediatek orders probably for Huawei

TSMC has been ordered not to sell chips to Huawei after September 1, so Huawei is finding other sources. Mediatek, #2 wireless chipmaker, already supplies certain Huawei models. It has now reserved massive capacity at TSMC to produce 7nm and 5nm chips. No other phone maker has a reason to order so many more chips from Mediatek, so they will almost certainly go to Huawei.

While Trump believes he can give orders to TSMC because some of its equipment is made in the U.S. US authority has not been extended to customers of TSMC, like MediaTek of Taiwan. Presumably, the U.S., Taiwan, and the People’s Republic are having an intense discussion behind the scenes, but so far Mediatek has not been blocked.

Huawei has numerous ways to get chips. They are reported to be discussing a large buy from Samsung. Samsung may also be able to produce chips for Huawei in a special facility that does not use U.S. equipment.

MediaTek strongly denied Japanese press reports they would just be a front for Huawei’s chips. Instead, it would sell its standard chips to all comers, including Huawei.

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