Apple will have to turn to Samsung, its great rival in the smartphone sector, in order to supply itself with memory chips. In question: the American sanctions which cut off its access to its Chinese supplier YMTC.
While Samsung is already supplying Apple with screens for its iPhone 14 Pro and 14 Pro Max, the Korean group could soon, according to a report by DigiTimes, becoming one of its main suppliers of memory chips, covering 40% of its needs. It must be said that its current partner Yangtze Memory Technologies (YMTC) is no longer in the odor of sanctity with the Biden administration.
YMTC on the U.S. government’s “Unverified” list
Apple had initially entered into an agreement with YMTC for the production of 128-bit 3D NAND memory chips intended to be integrated into smartphones sold from 2022. The clauses of the contract provided for the possibility for the Apple brand to supply up to 40% of its request for these components.
But since then, the tide of international relations has turned. The United States has decided to take new sanctions against the Chinese semiconductor industry, and in October YMTC joined the thirty or so companies in the Middle Kingdom considered to be “Unverified”. This mention characterizes the companies that Washington has not been able to inspect and whose commercial relations with American firms are subject to obtaining a license.
YMTC, a semiconductor company founded in 2016, is considered by US authorities to be a “ direct threat for domestic chipmakers. It is also currently under investigation by the United States Department of Commerce for selling components to Huawei, a tech giant that has been heavily sanctioned for several years. It could also be blacklisted as early as next December.
Apple activates the Samsung option
Under these conditions, Apple has no choice but to turn to its competitor, whose subsidiary Samsung Electronics is one of the world leaders in semiconductors.
The report of DigiTimes explains that the Korean could start next year to produce NAND chips for Apple from its factory in Xian. And given the volumes of components that will be ordered by the Apple brand, Samsung could well offer discounts, strengthening the synergies between the two players.
Remember in passing that Apple would plan to turn to the United States, but also to Europe for its chip supplies, so as not to be entirely dependent on Asia.
Sources: Wccftech, Reuters, MacRumors, Technology
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