Apple is reportedly testing memory chips from a Chinese supplier to back up current suppliers Kiokia, Samsung and SK Hynix.
Apple, concerned that the steady stream of memory chips that it receives for the iPhone could be disrupted, is considering adding a new source for those chips including one that would be its first supplier of chips from China. According to
Kioxia produces flash memory chips but two of its facilities were contaminated rendering 7 exabytes of 3D NAND unusableis in the process of testing sample NAND flash memory chips made by China's Yangtze Memory Technologies Co. The source of this news asked to remain anonymous since talks between Apple and Yangtze are private. Nonetheless, these talks have been reportedly going on now for months without any decision made by Apple one way or the other.
Memory chips are often the first components made by aspiring chipmakers since they don't require the complex circuity designs that Application Processors do which reduces the investment required to get production up and running. When it comes to memory chips, being able to build in large volumes is one of the most important capabilities.
Some sources tell Bloomberg that because memory chips are commoditized, Apple might decide to use Yangtze’s flash memory chips on some of its lower-end devices such as the recently released iPhone SE. Jeff Pu, an analyst with Haitong International Securities estimates that"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.
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