US senators have condemned Apple’s decision to buy memory chips from Chinese chipmaker Yangtze Memory Technology Corporation (YMTC) and have ordered an investigation into whether the deal poses a threat to national security, media reports said.
This comes amid reports that Apple is looking to buy memory chips from YMTC for the new iPhone 14, Financial Post reported.
Among those requesting a review of the controversial deal were Senate Intelligence Committee Democratic Chair Mark Warner and Republican Vice Chair Marco Rubio.
US lawmakers wrote to Director of National Intelligence Avril Haynes demanding an investigation.
YMTC has dubious ties to the Chinese Communist Party, and the new deal the chipmaker brokered with iPhone poses “serious privacy and security risks to the global digital supply chain that helps Apple grow.” said A report.
Moreover, there have been reports that significant subsidies from Beijing have helped the chipmaker grow quickly. The media portal, citing UK-based research firm Omdia, provided data on how the chipmaker’s share grew from 2020 to 2021.
“YMTC’s share of the global NAND flash memory market has increased from 0.6 percent in 2020 to 2.3 percent in 2021,” the outlet reported, citing the research.
Apple reportedly said it was “considering” sourcing some iPhones in China from YMTC. However, Apple on Thursday declined to comment on a letter from the US director of national intelligence, Avril Haynes, which was signed by Texas Republican John Cornyn and Democratic Senate Majority Leader Chuck Schumer.
Senators said the deal’s threat to the economy and national security needs to be assessed. He requested that she investigate ways the Chinese Communist Party is using the YMTC to prop up its native chip industry and drive semiconductor manufacturers out of the US and allied countries.
He also asked for a review of YMTC’s suspected assistance to Huawei and other Chinese companies that evade US sanctions. A number of Chinese technology companies have come under increasing scrutiny in Washington, including YMTC, the Financial Post reported.
