Bloomberg News reported on Wednesday, citing sources, that Apple is looking for new suppliers for the memory chips used in its iPhones, potentially including the first Chinese supplier.
Japan-based Kioxia Holdings – a leading supplier of flash memory chips Apple – reported a contamination at two of its manufacturing facilities last month, which the company said would reduce production.
Apple is now testing sample NAND flash memory chips by Chinese semiconductor company Yangtze Memory Technologies, the report said, adding that the iPhone maker has been discussing tie-ups for months.
The Yangtze declined to comment and Apple did not immediately respond to Reuters requests for comment. Report,
Earlier this month, another major Apple supplier Foxconn had to Suspended Its Shenzhen Operations Due to Spike in COVID-19 Cases Foxconn resumed some production at its Shenzhen campuses late last month after arranging for some employees to live and work in a bubble, an arrangement requested by the local government as it fights the spread of COVID-19 .
According to sources, only a small part of Foxconn’s production for Apple’s iPhone in China happens in the southern city of Shenzhen, with the majority in Zhengzhou in the central province of Henan.
Persistent industry-wide shortages of chips have disrupted production in the automotive and electronics industries, forcing some firms to reduce production.
© Thomson Reuters 2022