Danny Weber
Apple is testing more memory supply options, including CXMT and YMTC, while US lawmakers push back and chip costs continue to climb.
Apple is still exploring different memory supply sources, including Chinese manufacturers, despite objections from US lawmakers. Company executives discussed the issue during the latest earnings call and acknowledged that memory costs continue to rise. Components were more expensive in the latest quarter than in the previous one, and spending may increase further in the next reporting period. Existing inventory has helped soften part of the impact.
Asked about possible purchases of DRAM from China’s CXMT and NAND flash memory from YMTC, Apple said it continues to review multiple supply options. Adding more manufacturers could improve component availability, although the effect on pricing remains uncertain.
Earlier reports said Apple is testing DRAM made by CXMT, potentially opening the door for the company to join Apple’s supply chain. Financial Times also reported that Apple had sought support from the Donald Trump administration for possible purchases from CXMT. The company appears on a Pentagon blacklist over alleged links to China’s People’s Liberation Army. Any Chinese-made memory would reportedly be used only in devices sold in China.
A group of US lawmakers has urged Apple to abandon the plan. Senators also asked the company to confirm by August 21 that it would not buy memory from Chinese suppliers and to disclose technical information that may have been shared with CXMT and YMTC. Apple’s latest comments, however, suggest it is still keeping all available supply options on the table.
© A. Krivonosov