Beijing, May 26 (IANS): Chinese smartphone manufacturer Huawei has reportedly increased orders for MediaTek chips by 300 per cent this year from the previous year.

This comes after Huawei's ban to do business with US companies was extended for another year, and the US Commerce Department announced new rules which severely limits Huawei's access to chipsets, reports GizmoChina.

As part of new trade sanctions, Taiwan Semiconductor Manufacturing Co. (TSMC) will no longer be allowed to supply components to Huawei.

Huawei has also previously worked with third-party mobile chip suppliers, but the previous share is small and the number of chips it has purchased abroad will grow significantly this year, especially for MediaTek, the world's second-largest supplier of mobile phone chips after Qualcomm.

The Chinese smartphone maker is expected to use the Taiwanese chipmaker's 5G chipsets in is mid as well as high-end handsets. Previously, it only used MediaTek 4G chips in its low and mid-range segments.

Meanwhile, MediaTek is also evaluating if it has sufficient resources to meet Huawei's demands.