Why does Apple want to use YMTC chips?

To reduce high memory chip costs and diversify its supply chain.

What risks does Apple face with this move?

It could face U.S. sanctions since YMTC is on the blacklist.

How have rising memory costs affected Apple?

It led Apple to raise prices on some products, but the hikes may not fully cover the extra costs.

Apple Explores Using Banned Chinese Memory Chips to Cut Costs

Apple is reportedly in talks to use memory chips from sanctioned Chinese firm YMTC, aiming to diversify supply and reduce costs amid rising component prices.

June 29, 2026

2 min read

Source: Investor's Business Daily

Apple Inc. (AAPL) is considering using memory chips from Chinese company YMTC, which is on the U.S. trade blacklist, according to a report from Investor's Business Daily. The move comes as Apple faces rising memory chip costs, leading to price hikes on some products.

Details

The report indicates Apple is in talks with YMTC to test its memory chips, despite YMTC being on the U.S. Department of Commerce's Entity List. This move aims to diversify the supply chain and reduce reliance on current suppliers like Samsung and SK Hynix.

Context

The news comes amid escalating U.S.-China trade tensions, with Washington imposing restrictions on advanced technology exports to China. Apple is also under pressure to cut costs amid slowing iPhone demand.

What It Means for Investors

If Apple successfully integrates YMTC chips, it could lower production costs and improve margins. However, regulatory risks are significant, and Apple could face U.S. sanctions if it proceeds. Investors should closely monitor regulatory developments.

Frequently Asked Questions

YMTC is a Chinese memory chip manufacturer placed on the U.S. trade blacklist.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.