MediaTek has received an export permit from the government of Taiwan to sell components to ZTE in China, Reuters reported.
MediaTek is a chip designer based on Taiwan, while ZTE is a Chinese telecoms equipment manufacturer.
ZTE was recently issued a seven-year ban on buying American technology, including chips from Qualcomm and Intel, which will severely hamper the company’s ability to remain competitive in 5G technology.
ZTE was previously fined for shipping telecommunication equipment to Iran and North Korea, and the US Commerce Department found that it subsequently paid full bonuses to the employees who conducted the transaction.
“Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behaviour cannot be ignored,” said Commerce Secretary Wilbur Ross.
After the US issued its ban, Taiwan instructed local firms they need to apply for permission before shipping goods to ZTE.
Several tech firms have applied for export permits, said Taiwan.