Apple may need Samsung’s help with iPhone memory chips, here’s why

Yangtze Memory Technology (YMTC) is one of China’s leading NAND flash chip manufacturers. This early year, Apple planned to buy 128-layer 3D NAND flash memory chip from YMTC for use in iPhones that will be sold in the Chinese market. The Cupertino giant has further plans to buy up to 40% of the memory chips needed for all iPhones from the Chinese supplier. However, the Iphone The manufacturer had to put its plans on hold as YMTC and 30 other Chinese entities were recently added by the US to the list of “Unverified” companies. These are companies that US officials have not been able to inspect. Furthermore, the country’s trade restrictions could result in the Chinese supplier, YMTC, being blacklisted as early as December.
According to a DigiTimes report, Apple will now have to aim for Samsung Electronics for memory chips to be used in iPhones in 2023. Reports suggest Apple may keep SAMSUNG as an alternative supplier should the United States impose export controls on YMTC.
Why does the US impose trade controls on some Chinese companies
The Biden imposed export controls on China to slow its technological and military progress. The US is planning to cut off Beijing’s supply of some semiconductor chips made anywhere in the world using US equipment.
Under these restrictions, US-based companies are prohibited from sharing any design, materials, technology, or specifications with companies on the Unverified List without prior consent. license.

The United States has given companies 60 days to provide the necessary information. Companies that fail to do so will be added to the country’s export control blacklist.
The US Department of Commerce is investigating the YMTC for whether it violated Washington’s export controls by selling chips to companies that have been blacklisted. Huawei.
How Samsung can help Apple
Samsung has been the main supplier of DRAM chips for iPhones for a long time. Supply chain sources have cited that the South Korean company will announce the resumption of supply of NAND flash memory chips for iOS devices from its factory in Xi’an, China next year. The plant produces 40% of Samsung’s total 3D NAND flash capacity, from 128 to 176 layers.

Sluggish NAND flash market demand has forced chipmakers to cut production. However, unlike its rivals, Samsung did not do the same. Apple’s entry into the supply chain may also be one of the reasons for the Korean company to reduce production.
Furthermore, the report adds that Samsung is expected to be able to afford the price reductions and increase in production, which will further strengthen the company’s position in the memory chip market.