Taiwanese chip maker Mediatek has received an export permit from the government to sell components to ZTE, a Chinese telecoms equipment maker subjected to restrictions in the United States, Reuters reported.
The U.S. government last month banned American firms from selling to ZTE for seven years, saying the company had failed to comply with a settlement related to ZTE shipping U.S.-made goods to Iran in violation of U.S. sanctions.
Companies such as Intel, Qualcomm, Microsoft, Google, among others, will be impacted due to the ban.
Following the U.S. ban, Taiwan had instructed local firms wanting to ship goods to ZTE to apply for permission.
“We fully understand high-tech factories’ characteristic of fast-paced shipments of goods, we won’t create obstacles for the pace of their exports,” an official with Taiwan’s Bureau of Foreign Trade said.
“Taiwan’s government has its own control mechanisms, which is independent of the way the U.S. looks at it in a given situation,” the official said. “The mechanism will consider America and other advanced countries’ controls.”
China’s ZTE has submitted an application to the U.S. Commerce Department’s Bureau of Industry and Security (BIS) for the suspension of a business ban, it said in a filing to the Shenzhen stock exchange on Sunday.