Apple bows to pressure, rejects plans to buy Chinese memory chips
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After tightening US export controls against cooperation with Chinese companies, Apple halted plans to use YMTC chips in iPhone.
Apple has been working to reduce its reliance on Japan for iPhone flash memory, and it has he allegedly started the process of adding China’s Yangtse Memory Technologies Co (YMTC). No YTMC chip has yet been used in iPhones, but it is now claimed that Apple has abandoned its plans altogether.
According to Nikkei AsiaYMTC flash memory is least 20% cheaper than the competition, and the company’s 128-layer 3D NAND chips are the most advanced from a Chinese company. They reportedly lag a generation or two behind chips made by Micron and Samsung, both of which are known work with Apple.
Nikkei Asia claims that Apple has completed months of testing and verification. Political pressure and criticism from American policymakers forced her to abandon the plan.
“The products were tested but did not enter production lines when mass production of the new iPhone began,” the unnamed source said. Nikkei Asia.
Reportedly, the intention was to initially use YMTC chips only for iPhones sold in China. Another unnamed source, however, claims that Apple is considering buying 40% of its worldwide iPhone NAND flash memory from the company.
“YMTC is subsidized by the government so they can really beat the competition,” another source said.
The new U.S. export laws are part of the Biden administration’s goal to bolster U.S. processor manufacturing as well as avoid potential security problems. The administration, however, was granting exemptions certain companies to avoid creating a bottleneck in the industry.
Apple is not prohibited from buying from the YMTC, but there are restrictions on US companies sharing designs or technologies with companies on the so-called Unverified List. YMTC was added to the list on October 7, 2022, after failing to provide the US with certain information about its end users.
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