Apple halts its plan to use chips from China's YMTC, say reports

Amid political pressure, tech Giant Apple has suspended plans to use memory chips made by China's Yangtze Memory Technologies Co. (YMTC) in its products, media reports said.

According to Nikkei Asia, the move comes when the latest round of US export controls was imposed against China's tech sector.

The report said that Apple had already certified YMTC's 3D NAND flash memory for use in iPhones before the US government tightened export restrictions against China earlier this month. However, YMTC's chips, which the government subsidises, were initially planned for Apple to use by this year on account of them being at least 20 per cent less expensive than those of its competition, supply chain executives were quoted as saying.

'NAND' is flash memory, a key component found in all electronic devices such as smartphones, personal computers, and servers.

Due to the tighter controls, tensions with Beijing have increased since companies who do not provide the needed information within 60 days may be blacklisted. Moreover, the US Commerce Department investigated the YMTC over whether it violated Washington's export controls by selling chips to Huawei, which is already blacklisted.

--IANS

shs/vc/vd