Apple Bows To Pressure, Drops Plan To Buy Chinese Memory Chips

Following increased U.S. export controls against working with Chinese companies, Apple has halted plans to use YMTC chips in the iPhone. AppleInsider reports: According to Nikkei Asia, YMTC flash memory is at least 20% cheaper than that of rivals, and the company's 128-layer 3D NAND chips are the most advanced by a Chinese company. They remain reportedly one or two generations behind the chips made by Micron and Samsung, both of which are known to be working with Apple. Nikkei Asia claims that Apple had completed is months-long testing and verification. Political pressure and criticism from US policymakers made it abandon the plan. "The products have been verified, but they did not go into the production lines when mass production of the new iPhone began," an unspecified source told Nikkei Asia. Reportedly, the intention had been to initially use YMTC chips only for iPhones being sold in China. Another unnamed source, though, claimed that Apple was considering ultimately buying 40% of all its worldwide iPhone NAND flash memory from the company. "YMTC is government-subsidized so they can really outprice competitors," said another source.

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