Sanctions Drive Apple Away From Chinese Chip Supplier

Sanctions Drive Apple Away From Chinese Chip Supplier

Sanctions Drive Apple Away From Chinese Chip Supplier. Apple will not work with YMTC because of the stricter sanctions from the US.

 

Last week, the US imposed sanctions on several Chinese companies, preventing them from collaborating with American companies. One of those companies is YMTC (Yangtze Memory Technologies Co), where Apple planned to purchase memory chips (NAND flash memory) for the iPhones in the Chinese market this year.

Based on its sources, the Japanese business newspaper Nikkei now writes that Apple is putting those plans on hold due to the sanctions. Initially, the intention was to provide YMTC memory chips in forty percent of Chinese iPhones.

Analysts who contacted Reuters reacted twice. On the one hand, it is a relatively small player in the total production of the iPhone, so it expects little impact on Apple itself. But on the other hand, some analysts argue that such sanctions restrict Apple from diversifying its suppliers.

Relations between the US and China have been troubled for some time, which has been accompanied by sanctions and regulations that have made trade more difficult for years. In the margins of this, it is striking that Apple no longer mainly produces in China.

It recently moved the production of iPads, MacBooks, Airpods and iPhones (partly) to Vietnam and India to be less subject to diplomatic relations.

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