Apple seeks to buy memory chips from blacklisted Chinese company
Apple is in talks to purchase memory chips from Chinese company Yangtze Memory Technologies Corp (YMTC), which was recently added to the US trade blacklist. The move could help Apple diversify its supply chain away from Samsung and SK Hynix, but would require US government approval due to national security concerns.
Background
Apple is trying to buy NAND flash memory chips from Yangtze Memory Technologies Corp (YMTC), a Chinese firm that was added to a US trade blacklist in December 2022. This is significant because YMTC, a state-backed company, was cut off from American equipment and technology under export controls aimed at slowing China's semiconductor industry. Apple's interest — likely for the iPhone — forces a difficult decision: US regulators must weigh national security restrictions against the reality that YMTC has become a viable, lower-cost supplier for a key component, and Apple is a powerful voice in Washington. The case also tests the effectiveness of the export controls, as YMTC has reportedly continued operations. Apple has previously said it was not working with YMTC due to the restrictions.