Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data
Apple freezes plans to use China's YMTC chips - Nikkei
© Reuters.
(Reuters) - U.S. tech giant Apple Inc (NASDAQ:AAPL) has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday.
Apple had originally planned to start using state-funded YMTC's NAND flash memory chips as early as this year, Nikkei said, citing people familiar with the matter. The chips were initially planned to be used only for iPhones sold in the Chinese market.
The company was considering eventually purchasing up to 40% of the chips needed for all iPhones from YMTC, the newspaper said.
Analysts believe that YMTC is among the smaller companies that provide memory chips to Apple and it will see little to no effect by the move.
However, CFRA Research analyst Angelo Zino said that the bigger implication is that it limits Apple from potentially further diversifying its supplier base by utilizing domestic China players and improving its cost profile over time.
Apple is moving a greater amount of production to Vietnam and India to make products like the Airpods and new iPhones.
Shares of the iPhone-maker rose 1.6% to $140.59 in trading before the bell amid broader market gains.
The United States last week added China's top memory chipmaker YMTC and 30 other Chinese entities to a list of companies that U.S. officials have been unable to inspect, ratcheting up tensions with Beijing, starting a 60 day-clock that could trigger much tougher penalties.
Biden administration's sweeping set of export controls on China is a bid to slow Beijing's technological and military advances by cutting the country's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment.
Apple did not immediately respond to a Reuters request for comment, while YMTC declined to comment.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.