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Top Taiwan chip designer MediaTek says geopolitical risks 'difficult' subject
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Top Taiwan chip designer MediaTek says geopolitical risks 'difficult' subject
Nov 3, 2024 2:44 PM

TAIPEI, Oct 30 (Reuters) - The chief executive of

Taiwan's top chip design company MediaTek ( MDTTF ) said on

Wednesday that geopolitical risk is a very difficult subject but

they have a strong compliance programme and will not do anything

"strange".

Taiwan is home to major chip firms such as TSMC,

the world's largest contract chipmaker, which are at the

forefront of supplying companies at the heart of the artificial

intelligence revolution including Nvidia ( NVDA ).

But Taiwan is facing increased military pressure from China,

which views the island as its own territory, and the prospect

Donald Trump could win the Nov. 5 presidential election, who has

criticised Taiwan on the campaign trail for stealing U.S. chip

business and proposed tariffs on all imports.

Questioned on an earnings call about how MediaTek ( MDTTF ) plans to

manage geopolitical risks and tensions such as Trump tariffs and

more restrictions on the tech industry, the company's Chief

Executive Rick Tsai said it was something they thought about.

"This is of course a very big and a very difficult subject,

and I don't think any company can elaborate on this risk very

well, not to mention there are critical elections coming in one

week, so I will not really comment on the specific risk," he

said.

"However I will say for MediaTek ( MDTTF ) we have a very structured

and strong compliance programme," Tsai added.

"We will comply with the rules and regulations from all

governments. We will not do, shall we say, strange things. We

will protect our company and our shareholders from risk."

He did not elaborate.

Taiwan tech firms have also had to navigate U.S. curbs on

doing business with Chinese companies such as Huawei.

MediaTek ( MDTTF ) is a customer of TSMC's, which has halted shipments

to a client after the company discovered a chip it supplied to

the client ended up in a Huawei product.

MediaTek's ( MDTTF ) shares have risen 27% so far this year, in line

with the broader market. They closed down 0.8% on

Wednesday.

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