American technology company Apple has halted plans to use memory chips made by Chinese company Yangtze Memory Technologies Co (YMTC).
This move comes not long after the US tightened export measures to supply the Chinese technology industry.
According to a source familiar with the matter told Nikkei (Japan) on October 17, Apple initially planned to use NAND flash technology chips, expected to start this year.
According to the original plan, these chips were only used for iPhone phones sold in the Chinese market. Nikkei reported that Apple considered buying 40% of iPhone chips from YMTC.
However, these plans are on hold amid the recent US administration’s introduction of new export controls on the technology industry. These measures are said to make it difficult for Chinese companies to access supplies from US companies.
In a related move, last week, the US added YMTC and 30 other Chinese organizations to a list of companies that US officials cannot inspect. This is also negative news for the YMTC, and further strained relations between the US and China.
Currently, YMTC is also being investigated by the US Department of Commerce for possible violations of Washington’s export control orders. Specifically, YMTC may have sold chips to a number of Chinese technology companies, including Huawei.
In the series of control measures mentioned above, the administration of US President Joe Biden wants to restrain the development of technology and the Chinese military, by cutting off the supply of some types of semiconductor chips. The objects that are restricted from selling to China are companies around the world that use American equipment.