Apple faces additional pressure from US senators over potential deal with Chinese memory chips

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Apple (NASDAQ: AAPL) is facing additional pressure from US senators as lawmakers in the House have asked members of the intelligence community to look into whether there was a deal between the tech giant and a Chinese memory chip. Manufacturer Yangtze Memory Technologies represents national security interests.

Senator Mark Warner, chairman of the Senate Intelligence Committee, and Senator Marco Rubio, vice chairman of the committee, wrote to Avril Haynes, director of national intelligence, for a “public review and review” of Yangtze memory technology and any risks. it is posing.

“[W]We are writing to advise that any decision to partner with YMTC, regardless of the intended market for the products offered by such partnership, will acknowledge and reward China’s distorting and unfair trade practices that undermine the position of US companies worldwide, creating significant benefits for Chinese companies. . firms at the expense of foreign competitors,” the deputies wrote.

They added that in 2021, the Biden administration named Yangtze Memory Technologies China’s “national memory chip champion” and supports the Chinese Communist Party’s efforts to counter US innovation and leadership in the semiconductor industry.

Any potential partnership between Apple (AAPL) and Yangtze Memory Technologies would “jeopardize” the importance of the US semiconductor industry and could “undo efforts to support it, endangering the health of chipmakers in the US and allied countries and advancing Beijing’s goal of controlling over the global semiconductor market,” the lawmakers wrote.

In addition to Senators Warner and Rubio, Senate Majority Leader Chuck Schumer and Senator John Cornyn also signed the letter.

Apple (AAPL) of Cupertino, California did not immediately respond to Seeking Alpha’s request for comment.

Earlier this month, Apple (AAPL) was warned by Senator Rubio and Congressman Michael McCall after they saw a report that the US tech giant was considering a deal with Yangtze Memory Technologies.

At the time, Seeking Alpha reported that such a merger could be met with criticism due to the Chinese company’s ties to the Beijing government.

Earlier this month, Apple (AAPL) announced Financial Times it does not use chips from Yangtze Memory Technologies in any product, but stated that it is “evaluating the possibility of obtaining NAND chips from YMTC for use in some iPhones sold in China.”

Yangtze Memory Technologies competes with other memory chip manufacturers such as Micron Technology (MU) and Samsung Electronics (OTCPK:SSNLF).

Bank of America said on Wednesday that Apple (AAPL) is likely capitalizing on “attractive” promotions from U.S. telcos encouraging people to upgrade to the recently launched iPhone 14 product line.

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