Apple said to be diversifying its memory chip supply chain
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Apple said to be diversifying its memory chip supply chain
More memory chip suppliers could be recruited by Apple in the wake of a disruption at a key Japanese partner. Due to a recent contamination that resulted in the loss of a batch of output, Apple is considering to diversify its memory chip supply chain to minimise further disruptions from the Covid-19 pandemic and shipping issues.
Sources familiar with the matter told Bloomberg that Apple is looking at new memory chip suppliers for the iPhone, which may involve its first Chinese supplier. The existing memory chip suppliers are Micron, Samsung and SK Hynix.
The iPhone maker is believed to be testing sample NAND flash memory chips from Yangtze Memory Technologies Co, and both companies are said to have discussed on a partnership for months. However, no decision has been made.
The sources claim Yangtze Memory Technologies is behind the competition by at least one generation, but the Chinese firm could still be recruited as a backup option.
If a deal is struck, Apple would find itself in a diffcult position as the U.S government is engaged in a trade war with China and relations worsened due to the Chinese government's stance on the Ukraine war. Apple is also reportedly planning to shift up to 20% of iPhone production from China to India.
Source: Bloomberg
