Apple Freezes Plan to Buy Memory Chips From China's YMTC After US Imposes Export Controls

[MacRumors]

Apple has frozen plans to use chips from one of China's top memory chipmakers after tighter U.S. export controls were imposed on the Chinese tech sector, reports Nikkei Asia.

According to the report, Apple intended to buy 128-layer 3D NAND flash memory chips from Yangtze Memory Technologies (YMTC) for use in iPhones sold in the Chinese market as early as this year, with the possibility of eventually purchasing up to 40% of the chips needed for all iPhones.

Apple had already completed the months-long process to certify the memory before Washington earlier this month added YMTC and 30 other Chinese entities to an "Unverified" list of companies that U.S. officials have been unable to inspect. U.S. companies are prohibited from sharing any design, technologies, documents or specifications to companies on the Unverified List without a license.

The tighter controls have increased tensions with Beijing, since companies who cannot provide the necessary information within 60 days could be added to the official U.S. export control blacklist. YMTC is also being investigated by the U.S. Commerce Department over whether it violated Washington's export controls by selling chips to Huawei, which is already blacklisted.

The export controls on China imposed by the Biden administration are an effort to slow the country's technological and military advances by cutting off Beijing's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment. Apple and YMTC did not respond to Nikkei's requests for comment.

Article Link: Apple Freezes Plan to Buy Memory Chips From China's YMTC After US Imposes Export Controls

 

[senttoschool]

It's nothing new for US. They've done this to Japan before. The only difference now is that China has a high chance to surpass the US due to its resources while Japan never really had that potential.

And because China has a communist government (in name only, capitalism in practice), the US has another angle to justify these policies.

The US can say "we're banning chip imports/exports to China because they're a single communist government state" instead of saying "we're banning chip imports/exports to China because we're trying to slow their growth so we can stay the world boss longer".

"Back in the 1980s, Japan was portrayed as the greatest economic threat to the United States, and allegations of intellectual property theft were only part of Americans' vilification. Thirty years later, Americans have made China the villain, when, just like three decades ago, they should be looking squarely in the mirror."

“When governments permit counterfeiting or copying of American products, it is stealing our future, and it is no longer free trade.” So said US President Ronald Reagan, commenting on Japan after the Plaza Accord was concluded in September 1985.

https://www.project-syndicate.org/c...a-is-the-new-japan-by-stephen-s-roach-2019-05

I always laugh when people think China vs the US is anything other than economics.

 

[Pezimak]

I'll say it now, sanctions against China are coming, our useless British PM is declaring them a direct threat and said she wanted to sanction China before she came PM, even through the government has allowed various Chinese companies and conglomerates to buy up half the country.
Let's see what happens.

 

[senttoschool]

I'll say it now, sanctions against China are coming, our useless British PM is declaring them a direct threat and said she wanted to sanction China before she came PM, even through the government has allowed various Chinese companies and conglomerates to buy up half the country.
Let's see what happens.

Politics 101 is to distract your voter base and blame your problems on a foreign country. Having a common foreign enemy gives power to politicians. China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

Is China causing you problems in real life? No. Hard-working Chinese people is the reason we have abundant affordable products in the western world. But when the Chinese want to move up the value chain so they can catch up in quality of life, the west is now suddenly saying they're all around an evil country that must be sanctioned.

The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

 

[mattg3]

Well said

 

[ilikewhey]

It's nothing new for US. They've done this to Japan before. The only difference now is that China has a high chance to surpass the US due to its resources while Japan never really had that potential.

And because China has a communist government (in name only, capitalism in practice), the US has another angle to justify these policies.

The US can say "we're banning chip imports/exports to China because they're a single communist government state" instead of saying "we're banning chip imports/exports to China because we're trying to slow their growth so we can stay the world boss longer".




https://www.project-syndicate.org/c...a-is-the-new-japan-by-stephen-s-roach-2019-05

I always laugh when people think China vs the US is anything other than economics.

not only that, the plaza accord royally screwed the japanese advancement, they been in an economic downward spiral since then.

 

[WiiDSmoker]

Politics aside, all I see is another reason for Apple to have the base storage low and charges insane prices for storage bumps.

 

[ilikewhey]

I'll say it now, sanctions against China are coming, our useless British PM is declaring them a direct threat and said she wanted to sanction China before she came PM, even through the government has allowed various Chinese companies and conglomerates to buy up half the country.
Let's see what happens.

i thought Boris was a joke, but this Truss takes it to the next level lol. the word on the street is lawmakers in parliament wants to oust her already.

 

[one more]

Can Apply source comparable chips elsewhere, e.g. Taiwan?

 

[ilikewhey]

Can Apply source comparable chips elsewhere, e.g. Taiwan?

probably not for the price tim apple wants. its ok, apple will probably take out a cable or something to eat up the cost difference.

 

[jamisonbaines]

Will these policies effect prices of electronics in the near term? I'm considering hitting fast forward on a few purchases (widescreen monitor, some autofocus camera lenses) just because I worry prices may jump.

 

[senttoschool]

Will these policies effect prices of electronics in the near term? I'm considering hitting fast forward on a few purchases (widescreen monitor, some autofocus camera lenses) just because I worry prices may jump.

Prices have already gone up. Part of the inflation issue is due to Trump-era tariffs on Chinese imports, which Biden has not removed.

But I wouldn't worry too much about near-term price inflation due to these sanctions yet.

 

[interessiert]

It's nothing new for US. They've done this to Japan before. The only difference now is that China has a high chance to surpass the US due to its resources while Japan never really had that potential.

And because China has a communist government (in name only, capitalism in practice), the US has another angle to justify these policies.

The US can say "we're banning chip imports/exports to China because they're a single communist government state" instead of saying "we're banning chip imports/exports to China because we're trying to slow their growth so we can stay the world boss longer".




https://www.project-syndicate.org/c...a-is-the-new-japan-by-stephen-s-roach-2019-05

I always laugh when people think China vs the US is anything other than economics.

It's not "just economics" – these Chinese needs to keep technologically in distance – look at their expansive strategy in Afrika, also in Europe over the last decade.

This is a dictatorship country willingly to reign over more than their own country.

And do not forget: Taiwan threat.

So enough good reasons to limit know how export. 👍

 

[opeter]

Politics 101 is to distract your voter base and blame your problems on a foreign country. Having a common foreign enemy gives power to politicians. China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

Is China causing you problems in real life? No. Hard-working Chinese people is the reason we have abundant affordable products in the western world. But when the Chinese want to move up the value chain so they can catch up in quality of life, the west is now suddenly saying they're all around an evil country that must be sanctioned.

The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

Top comment, couldn't agree more with you! Hats of to you! 🎩

 

[interessiert]

Politics 101 is to distract your voter base and blame your problems on a foreign country. Having a common foreign enemy gives power to politicians. China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

Is China causing you problems in real life? No. Hard-working Chinese people is the reason we have abundant affordable products in the western world. But when the Chinese want to move up the value chain so they can catch up in quality of life, the west is now suddenly saying they're all around an evil country that must be sanctioned.

The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

This is not the right view to real economic life – think at the imbalance of treasure rules – till now no company can work in china free and sheltered by law than Chinese companies can do in USA, Canada or Europe – and also the treasure volume is in heavy imbalance since many years without end in sight.

 

[interessiert]

Politics aside, all I see is another reason for Apple to have the base storage low and charges insane prices for storage bumps.

This is obviously wrong: There are other places to produce these memory chips in cheap mass production: South Korea or Taiwan, maybe India.

 

[matrix07]

The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

Not sure if it's gonna happen. China just have to aim for BRICS countries - and Europe for the moment is still good, but this is a long time coming. With the way China acting on Hong Kong and Taiwan I'm surprised this didn't come sooner.

 

[alongdingdong]

Politics 101 is to distract your voter base and blame your problems on a foreign country. Having a common foreign enemy gives power to politicians. China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

Is China causing you problems in real life? No. Hard-working Chinese people is the reason we have abundant affordable products in the western world. But when the Chinese want to move up the value chain so they can catch up in quality of life, the west is now suddenly saying they're all around an evil country that must be sanctioned.

The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

Pure racebating here.

Quote:
China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

Such cheap un-educated one liners from your end.
You ever been into china at all? 99% of the population is Chinese ethnic and mingle only amongst themselves, Why do western countries only be inclusive and multicultural? Chinese settle everywhere in the world build up their own closed out communities in the west, that is factual.

You are only using single sided and very cheap examples, the issue is much complexer then that.

Quote:
The west is basically saying to China, "no, you can't design, produce, and sell advanced technology. You must stay as our cheap factory."

This is clearly a racist based assumption from someone narrow minded only looking at it from their own point of view.

Would not be surprised you are not even Chinese at all.
But i say this, bringing back business to western worlds and accept you going to pay more for your goods is not a bad thing at all alot of people of all cultures would benefit from more work opportunities in the west including the huge amount of Chinese living and working in the west and love living there.

 

[siddavis]

It's nothing new for US. They've done this to Japan before. The only difference now is that China has a high chance to surpass the US due to its resources while Japan never really had that potential.

And because China has a communist government (in name only, capitalism in practice), the US has another angle to justify these policies.

The US can say "we're banning chip imports/exports to China because they're a single communist government state" instead of saying "we're banning chip imports/exports to China because we're trying to slow their growth so we can stay the world boss longer".




https://www.project-syndicate.org/c...a-is-the-new-japan-by-stephen-s-roach-2019-05

I always laugh when people think China vs the US is anything other than economics.

Sure, the US made China the villain.

 

[tastesliketailpipe]

Apple hasn't frozen its plan to buy chips - it was forced to abandon it.

 

[one more]

For people blaming China here, let’s not forget that it was not China suddenly getting lazy, trying to reduce and restrict their own exports. It is the US trying to restrain the Chinese economy to preserve its dominance worldwide. So this is a “cause > consequence” situation.

 

[siddavis]

Politics 101 is to distract your voter base and blame your problems on a foreign country. Having a common foreign enemy gives power to politicians. China is an easy target due to prolonged media propaganda and historical anglo saxon racism towards the Chinese.

The first half of this is correct. The second half pretends China has been a good faith trade partner. The last part is just lazy.

 

[siddavis]

For people blaming China here, let’s not forget that it was not China suddenly getting lazy, trying to reduce and restrict their own exports. It is the US trying to restrain the Chinese economy to preserve its dominance worldwide. So this is a “cause > consequence” situation.

Right, because there hasn’t been any kind of intellectual theft going on for the last half century. This is loooong overdue.

 

[Pezimak]

Not sure if it's gonna happen. China just have to aim for BRICS countries - and Europe for the moment is still good, but this is a long time coming. With the way China acting on Hong Kong and Taiwan I'm surprised this didn't come sooner.

Hong Kong is another perfect example of sick political games, the U.K. signed it over to the Chinese with laws in place stating they won't treat the people there the same as they do in China, didn't take them long at all to totally ignore that, now despite it being in the contract and law how did the British Government respond? By literally inviting any Hong Kong resident to move and live in the U.K., I am not joking. Pure political game at the expense of millions of people. Naturally most Hong Kong residents have decided to stay in their country.
That doesn't make China a threat, just predictable and the British Government sell outs. Well they are anyway.

I can see a trade war coming too though, and it's one the West could lose because a large majority of products are produced in China for Western consumption, if sanctions are placed on them inflation will increase even further I will imagine.

 

[alongdingdong]

Hong Kong is another perfect example of sick political games, the U.K. signed it over to the Chinese with laws in place stating they won't treat the people there the same as they do in China, didn't take them long at all to totally ignore that, now despite it being in the contract and law how did the British Government respond? By literally inviting any Hong Kong resident to move and live in the U.K., I am not joking. Pure political game at the expense of millions of people. Naturally most Hong Kong residents have decided to stay in their country.
That doesn't make China a threat, just predictable and the British Government sell outs. Well they are anyway.

I can see a trade war coming too though, and it's one the West could lose because a large majority of products are produced in China for Western consumption, if sanctions are placed on them inflation will increase even further I will imagine.

Yeah but many many many honkies moved over to the UK and still try to get out HK.

I have many many family members that are ABC moved back to HK to take care of a elderly and move right back to the UK as soon as they can, including the many that has Chinese mainland family lines rather moved the UK then china...

But agreed early years under UK rule were absolute sheit, lots of horror stories, seen lots of wrong **** there that make you scratch behind your ears why some are so fanatic pro UK.