Apple Inc has suspended plans to use memory chips from China’s Yangtze Memory Technologies Co Ltd (YMTC) in its products after Washington imposed stricter export controls on Chinese tech companies, the Nikkei reported on Monday. Apple initially planned to start using NAND flash memory chips from state-funded Yangtze Memory Technologies as early as this year, Nikkei reported, citing people familiar with the matter. The chips were originally planned to be used only in iPhone models sold in the Chinese market.
The U.S. tech giant is considering eventually buying up to 40 percent of the chips needed for all iPhone models from YMTC, the paper said.
The U.S. last week added China’s largest memory chip maker, Yangtze Memory Technologies, and 30 other Chinese entities to a list of companies U.S. officials cannot inspect, escalating tensions with Beijing, kicking off 60 days of work that could spark more scrutiny. punishment.
The U.S. Commerce Department is also investigating whether YMTC violated Washington’s export controls by selling chips to blacklisted Chinese telecommunications company Huawei.
The Biden administration’s sweeping export controls on China are designed to slow Beijing’s technological and military advances by cutting off the supply of certain semiconductor chips China makes using U.S. equipment anywhere in the world.
Apple did not immediately respond to a Reuters request for comment, and YMTC declined to comment.
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