Apple has put its plan to use a Chinese memory chip manufacturer in new versions of the iPhone on hold after the Commerce Department implemented restrictions on tech-related sales to and from the country.
The Big Tech giant announced on Monday that it would not use chips from Yangtze Memory Technologies Co., one of 31 Chinese companies affected by newly implemented export controls, in its products. The decision arrives after months of approving and certifying the company’s technology for use in iPhones.
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The products were nearly ready for use in iPhone products when the Commerce Department implemented the new rules. “The products have been verified, but they did not go into the production lines when mass production of the new iPhone began,” one source told Nikkei Asia.
The YMTC chips were initially planned only to be used in iPhones in the Chinese market. However, Apple originally had plans to expand the use of YMTC chips to 40% of all iPhones produced by the company.
The Commerce Department announced on Oct. 7 that it was implementing new rules which would make it harder for China to acquire advanced semiconductor chips due to concerns about them being used to produce advanced weaponry. This included placing 31 Chinese factories, including YMTC, on the “unverified list,” limiting their ability to purchase or acquire certain semiconductors or advanced tech within the U.S. without a license.
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China bashed the new rules, claiming they will “not only damage the legitimate rights and interests of Chinese companies but also affect American companies’ interests.”