Following the imposition of tighter export restrictions from the US, Apple was forced to abandon its supply of Chinese-made flash memory chips. The American company was supposed to buy NAND memory from the Chinese supplier YMTC, but now it’s off the board.

Assuming 40% of NAND memory required for iPhone will be purchased from YMTC. But the company will now have to negotiate with Samsung, SK Hynix and other non-Chinese manufacturers.

China’s YMTC was supposed to supply Apple with 128-layer 3D NAND flash memory for use in the iPhone. It was also 20% cheaper than analogues. This will allow the tech giant to influence other suppliers and force them to lower their prices.

It was also assumed that iPhones with YMTC memory chips would only be sold in the Chinese market, but a source claims that this memory is planned to be used in global versions as well.

YMTC chips are not currently used in any Apple products, but they are being considered in this capacity in the global market in the future, according to Brent Fredberg, investment director at Brandes Investment Partners in San Diego.

As for the Chinese market, there are no restrictions. However, unless the US government relaxes export controls, Apple will likely rely on other suppliers. However, this may cause smartphone prices to increase. Source