Apple Faces Regulatory Heat For Procuring iPhone 14 Chips From Controversial Chinese Chipmaker

  • Republican lawmakers warned Apple Inc AAPL against intense scrutiny lest it procured memory chips from controversial Chinese semiconductor manufacturer Yangtze Memory Technologies Co for the new iPhone 14, the Financial Times reports.
  • The lawmakers expressed alarm at reports suggesting Apple would add the Yangtze to its list of suppliers for Nand flash memory chips meant for storing data on smartphones.
  • Apple acknowledged not using YMTC chips in products and evaluated sourcing from YMTC for Nand chips for some iPhones sold in China.
  • The lawmakers argued that YMTC has extensive ties to the Chinese Communist party and military and broke export control laws by selling goods to Huawei Technologies Co, Ltd. 
  • Apple will effectively be transferring knowledge and know-how to YMTC that will supercharge its capabilities and help the CCP achieve its national goals, they cautioned.
  • A Democratic lawmaker has also privately raised concerns about YMTC.
  • Earlier, a bipartisan group of senators urged the government to put YMTC on the "entity list" for violating export control rules by selling memory chips to Huawei. 
  • They accused Beijing of subsidizing YMTC, making way for it to dominate the sector.
  • Apple did not respond to lawmakers' and congressional YMTC-related speculation queries. 
  • Recently U.S. restricted sales of high-performance AI Nvidia Corp NVDA chips for servers, the A100 and H100, to China and Russia. 
  • Price Action: AAPL shares traded higher by 0.67% at $155.49 in the premarket on the last check Friday.
  • Photo by Matias Cruz from Pixabay
Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsRegulationsTechMediaBriefsHuawei
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!