Apple Says It Will Stop Using YTMC Memory Chips in iPhone Models Amid Tighter U.S. Export Regulations

Apple has suspended plans to use memory chips from China’s Yangtze Memory Technologies Co (YMTC) in its products after Washington imposed stricter export controls on Chinese tech companies, the Nikkei reported on Monday. Apple originally planned to start using state-funded YMTC NAND flash memory chips as early as this year, the Nikkei said, citing people familiar with the matter. The chips were originally planned to be used only for iPhone models sold in the Chinese market.

The newspaper reported that the American tech giant was considering buying up to 40 percent of the chips needed for all iPhone models from YMTC.

Last week, the US added YMTC, China’s largest memory chip maker, and 30 other Chinese companies to a list of companies that US officials failed to inspect, raising tensions with Beijing by imposing a 60-day regime that could lead to much tougher penalties. .

YMTC is also being investigated by the US Department of Commerce for whether it violated Washington’s export controls by selling chips to blacklisted Chinese telecommunications company Huawei.

The Biden administration’s sweeping export controls on China are an attempt to slow down Beijing’s technological and military progress by cutting off the supply of certain US-made semiconductor chips to the country.

Apple did not immediately respond to a Reuters request for comment, and YMTC declined to comment.

© Thomson Reuters 2022