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Apple puts the plan of using China’s YTMC chip on hold due to pressure from the US

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Apple was in talks to use China’s newest YTMC chip on their products. However, a new piece of information has started hovering online which claims that Apple has reportedly put the plan of using the YTMC (Yangtze Memory Technologies Co.) chips on hold. Let’s have a more closer and detailed look at the information.

Apple halts the plan of using the chipsets from YTMC

A new report shared by NikkeiAsia claims that Apple has currently put the plan of using YTMC (Yangtze Memory Technologies Co.) chips on hold. According to the report, numerous insiders with knowledge of the situation have disclosed that the plan’s suspension follows the most recent rounds of US export restrictions implemented against the Chinese tech industry. The supply chain is also being disrupted by the news, which is likewise indicative of Washington’s crackdown.

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Notably, the brand had previously finished the procedure to obtain certification for the 18-layer 3D NAND flash memory from YMTC before deploying it in iPhones. But earlier this month, the US government announced stricter limitations on shipments from China. Strangely, YMTC’s 18-layer chips are about 20% less expensive than other top competitors, while being one or two generations behind rivals like Samsung and Micron. Now, it appears that Apple has shelved its intentions for this agreement in response to mounting global pressure and condemnation from US politicians.

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One source said, “The products have been verified, but they did not go into the production lines when mass production of the new iPhone began,” and another said, “YMTC is government-subsidized so they can really outprice competitors.” Meanwhile, the director of investments at Brent Fredberg Brandes Investment Partners said, “Apple may continue wanting to use YMTC in the local market for China.” However, given the current regulatory framework, it’s extremely improbable that YMTC will even be able to provide the kind of NAND chips that Apple would require in a few years.

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