(Yicai Global) Aug. 18 -- The US government’s latest trade ban against Chinese telecoms giant Huawei Technologies is unlikely to have a material impact on MediaTek’s short-term operating conditions, the Taiwanese chipmaker told Yicai Global today.

The company always complies with global trade laws and regulations and is closely monitoring changes in US export control rules, the Hsinchu-based firm said, without giving a definite answer as to whether it will stop supplying Huawei with chips.

Yesterday the Bureau of Industry and Security in the US Department of Commerce further restricted Huawei’s use of US technologies and software. It also added another 38 Huawei subsidiaries to its so-called Entity List, a blacklist which bars US companies from trading with any companies on it, including Toga Networks, an Israeli information technology firm acquired by Huawei, and Huawei’s research and development business in the UK.

This follows the imposition of the Foreign-Produced Direct Product Rule on Huawei in May, to prevent the Shenzhen-based tech giant from obtaining semiconductors made anywhere in the world that use US software and technology. This made it difficult for Huawei to source manufacturers for its Kirin chips, but it did not prevent third-party chip designers from supplying standard products to Huawei.

Now the US has tightened the noose even tighter with a series of additional restrictions to prevent any form of transaction with a firm on the Entity List. Curbs now apply to “1) where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any Huawei entity on the Entity List; or 2) when any Huawei entity on the Entity List is a party to such a transaction, such as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user,” the BIS said.

“These actions, effective immediately, prevent Huawei’s attempts to circumvent U.S. export controls to obtain electronic components developed or produced using U.S. technology,” it added.

MediaTek is seeking external legal counsel to ensure compliance with the latest regulations and all relevant rules, it said. Earlier this month the firm told Yicai Global that it was able to undertake Huawei’s orders.

Editors: Xu Wei, Kim Taylor