Apple's reliance on China put to test as political pressure freezes new chips plan:
Apple has been trying to rely less on China due to US government pressure. While BGR has been reporting that the Cupertino company is trying to diversify its supply chain from China to India, Taiwan, and other Asian countries, it seems Apple has another reason to keep doing that. A report indicates that the company's plans to use China's YMTC chips have been put on hold due to US political pressure.
According to Nikkei Asia, Apple will no longer use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products.
The publication explains that "the move comes amid the latest round of US export controls imposed against the Chinese tech sector and is a sign that Washington's crackdown is creating a chilling effect down the supply chain."
In March, it was reported by Bloomberg that Apple was considering for the first time adding a Chinese flash storage maker to its supplier roster:
(Score: 0) by Anonymous Coward on Tuesday October 18 2022, @05:17PM
I'd be saying Ouch! if I was YMTC. Apple doesn't do anything in a small way these days, they must have been buying a shit load of memory. Losing that order will really hurt.
(Score: 0) by Anonymous Coward on Tuesday October 18 2022, @06:48PM (3 children)
Now we wait for the CCP's response to Biden's latest rattle sponsored by domestic semi lobbyists
(Score: 3, Informative) by RamiK on Tuesday October 18 2022, @11:50PM (2 children)
Direct subsidize by the looks of it: https://www.globalsmt.net/world-news/tech-war-local-governments-in-china-ramp-up-support-for-chip-industry-development-as-us-piles-on-export-restrictions/ [globalsmt.net]
Regardless, Apple and USG contractors boycotting Chinese DRAM suppliers at a time when demand is hitting record lows [trendforce.com] will only go so far.
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(Score: 0) by Anonymous Coward on Wednesday October 19 2022, @09:03AM (1 child)
Doing it while demand is low could improve the revenues of the approved DRAM suppliers, while leaving China to fight over a few customers who aren't willing to pay much.
(Score: 2) by RamiK on Wednesday October 19 2022, @02:25PM
The trade deficit between the US and China means China can always place selective tariffs on other supplies targeting to the US and use the revenues to subsidize industries affected by the US boycotts. So, combined with how the other DRAM suppliers aren't manufacturing in the states, the US will bleed on both ends while China will cut most of their losses at the US's exclusive expense.
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(Score: 2) by legont on Wednesday October 19 2022, @11:55PM
Purely based on the article, how is the US *export* control prevents Apple's *import* of China's chips?
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.