October 7, 2022
Apple Considers Using Chinese Storage Supplier for the First Time [Report]

Apple Considers Using Chinese Storage Supplier for the First Time [Report]

Posted March 31, 2022 at 2:49pm by iClarified · 2273 views
Apple is considering expanding its suppliers of flash memory after Kioxia Holdings lost a batch of output due to contamination last month, reports Bloomberg. One of the companies being considered is China's Yangtze Memory Technologies Co. If approved, Yangtze would be the first Chinese company to enter Apple's supply network for this critical component.

Although, Samsung and SK Hynix will likely be able to handle shortfall caused by Kioxia's disruption, Apple is still looking to diversify its supply chain and offset further risk of disruption.

The iPhone maker is now testing sample NAND flash memory chips made by Hubei-based Yangtze Memory Technologies Co., the people said, asking not to be identified discussing private deliberations. Apple’s been discussing the tie-up with Yangtze, owned by Beijing-backed chipmaking champion Tsinghua Unigroup Co., for months though no final decisions have been made.

Yangtze Memory was created through a merger with a government-run chip factory in 2016. It's considered China's best shot at designing and developing flash memory. If Apple were to sign a contract with Yangtze it would be a milestone for China and likely cause criticism at home.

Despite this, analysts believe Yangtze will land orders...

“Yangtze memory will supply about 5% of memory for iPhone SE, and 3% to 5% of memory for the upcoming iPhone 14. Apple is using its product because it offers competitive pricing,” projected Jeff Pu, an analyst with Haitong International Securities.

More details in the full report linked below...

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Apple Considers Using Chinese Storage Supplier for the First Time [Report]
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