Nanya Technology to seek permit to supply chips to Huawei

09/14/2020 09:57 PM
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Taipei, Sept. 14 (CNA) Nanya Technology Corp., a leading Taiwanese random access memory (DRAM) chip supplier, said Monday it will seek a license from the United States to sell products to Huawei Technologies, hoping to avoid U.S. restrictions on the Chinese company.

In a statement posted on the Taiwan Stock Exchange, Nanya Technology said it will stop supplying memory chips to Huawei starting Tuesday to comply with the sanctions imposed by Washington.

The company said that while it did not expect the restrictions to have material impact on its operations, it will seek a permit from the U.S. as required to resume its supply of chips to Huawei.

Nanya Technology is among many chipmakers in the world, including Taiwan Semiconductor Manufacturing Co. (TSMC), Taiwanese integrated circuit designer MediaTek Inc., Samsung Electronics Co., and U.S. DRAM maker Micron Technology Inc., that will stop selling chips to Huawei.

The suspensions in sales come after the U.S. Department of Commerce (DOC) added 38 Huawei affiliates to the U.S. government's economic blacklist on Aug. 17 amid escalating tensions between Washington and Beijing.

The new measures raised the total to 152 affiliates on the list since Huawei was first added in May 2019.

The expanded restrictions were aimed at preventing Huawei from using affiliates to circumvent the sanctions, which have been put in place to prevent exports of American technologies to the Chinese company.

Washington has long accused Huawei of pilfering U.S. technologies, which the Chinese company has strongly denied.

In the statement, Nanya Technology said the company will do its best to meet its clients' needs as long as international trade rules permit it.

The company said it will also try to diversify its customer portfolio and product mix and strengthen risk controls to help the company avoid headwinds in the global market.

MediaTek is also seeking a license to continue to supply chips to Huawei, according to a statement released by the company in late August.

Before the restrictions imposed on Huawei took effect, the Chinese brand built up its inventories by placing large orders to Taiwanese suppliers, analysts said.

TSMC was one of the beneficiaries, posting consolidated sales of NT$850.14 billion (US$29.05 billion) in the first eight months of 2020, up 30.7 percent from a year earlier.

(By Chung Jung-feng and Frances Huang)

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