- Apple is probably testing out RAM memory chips fabbed by Chinese manufacturers.
- The two Chinese companies listed in a report are part of Entity List from the Trump administration categorizing them as potential Chinese miliary companies.
- This puts Apple and Trump administration on the crossroad although the former is appealing for an exception from repurcussions.
Apple is testing memory chips fabbed by CXMT, a major DRAM manufacturer based in China. Well, that’s what the latest report from Bloomberg suggests, believed to be limited to iPhones sold in China only. Here’s what we know so far.
Apple’s move to CXMT DRAM chips amid a growing global shortage
Earlier, we found out how Cupertino-based Apple was in talks with two major DRAM makers, i.e., ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC). Cut to now, the latest intel suggests Apple has already started testing out DRAM chips fabbed by CXMT. Although these are meant for iPhones and other devices to be sold in China (only), it could have repercussions.
To summarize, US President Donald Trump added both CXMT and YMTC to its entity list under the US Department of Defense Section 1260H. Apparently, the Trump administration classified both of these makers as ‘Chinese military companies.’ The world is already scrambling to find chips given the ongoing supply chain snarls, chip shortage, extensively growing demand, and other reasons. Transacting with these Chinese companies could result in political backlash for Apple, a major US brand.
In fact, Apple CEO Tim Cook is in talks with the Commerce Department and the Trump administration to consider an exception and appeal to avoid any repercussions for the tech juggernaut. It could be argued that the chips will be used for iPhones and other devices to be sold in China, sparing other markets from alleged breaches and attacks originating from the Chinese shores.
It is also true that the growing AI demands and data centers have gobbled up many chips in the market. In fact, we see major infrastructure announced every other month, with the largest AI center being in Abu Dhabi, UAE, at approximately 10 square miles. Of course, some of the proposed data centers that will come in the years moving ahead will properly dwarf the aforementioned location; however, it has a ripple effect that essentially makes phones expensive for the end users.
Nevertheless, Apple is testing out RAM memory chips from CXMT, and there’s also a long mention of YMTC in the pipeline in terms of NAND chips starting in 2022. It remains to be seen how this development affects the Apple and Trump administrations as well as the global political front.
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