Apple reportedly eyes up alternative memory chip suppliers

Date:
Thu, 31 Mar 2022 14:16:40 +0000

Description:
Apple is reportedly testing memory chips from a new supplier as it seeks to protect itself from market disruption.

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Apple is reportedly testing flash memory chips from alternative suppliers as it seeks to reduce its exposure to disruption in its supply chain.

NAND memory chips are used in a wide variety of consumer electronics and the market is heavily commoditised, subject to fluctuations in price, and adheres to just-in-time inventories.

Apple sources these components from a variety of sources, including market leaders Samsung and SK Hynix. However, Bloomberg says problems at Japanese firm Kioxia earlier this year have demonstrated a potential weakness in its current approach. iPhone memory chips

While existing suppliers are expected to fill any shortfall, Apple is said to be discussing the possibility of using flash chips from Chinese vendor Yangtze.

Any deal would be a huge boost for China, which wants to become a bigger player in semiconductors to boost its technology industry and increase its independence. Read more

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However, the situation is still speculative at present and it is thought Yangtzes technology is a generation behind the market leaders. However, its chips could be used to power mid-range devices like the iPhone SE and would
be closer to Apples chief assembler Foxconn, which is also predominantly
based in China.

Such an arrangement would also win favour with Beijing given Apples
production ecosystem there supports millions of jobs. It had been previously suggested Apple could move up to 15 and 30% of its activities to other countries such as India, Indonesia, Malaysia or Mexico in bid to reduce its own exposure to a single country.

Some iPhone 13 production has now been moved to India.

The company has been contacted by TechRadar Pro for comment. The iPhone range is hugely popular so why not take a look at the best deals if you feel like getting your hands on one ?

Via Bloomberg



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Link to news story: https://www.techradar.com/news/apple-iphone-alternative-memory-chip-suppliers/


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