Amid mounting political pressure, Apple has put on hold plans to use memory chips from China’s Yangtze Memory Technologies Co. (YMTC) in its products, Nikkei Asia reports citing “multiple sources.”
In September, Republican lawmakers warned Apple that it will face intense scrutiny from Congress if the California company procures memory chips from controversial Chinese semiconductor manufacturer YMTC.
Cheng Ting-Fang, Lauly Li, and Yifan Yu for Nikkei Asia:
Apple had already completed the monthslong process to certify YMTC’s 128-layer 3D NAND flash memory for use in iPhones when the U.S. government unveiled the tighter export restrictions against China early this month, multiple sources said.
NAND flash memory is a key component found in all electronic devices from smartphones and personal computers to servers. YMTC’S 128-layer chips are by far the most advanced by a Chinese chipmaker, though still one or two generations behind market leaders like Samsung Electronics and Micron.
Apple originally planned to start using the government-funded YMTC’s chips as early as this year, as they are at least 20% cheaper than those of its leading rivals, supply chain executives said.
However, mounting geopolitical pressure and criticism from U.S. policymakers led Apple to change course, according to several sources.
MacDailyNews Take: As we wrote last month, “Apple is not considering using YMTC chips in iPhones for sale outside China, nor, from the sound of it, will they be doing so anytime in the foreseeable future.”
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