Bloomberg News reported on Wednesday that Apple, Inc. is now exploring new suppliers for memory chips, including its first Chinese supplier, after an output disruption with a critical Japanese supplier.
Japan-based Kioxia Holdings Corp has been a key supplier of flash memory chips to Apple. However, last month, the company reported a contamination at two of its manufacturing facilities. They said this would result in reduced production.
Sample NAND flash memory chips by Yangtze Memory Technologies Co., a Chinese semiconductor company, are now being tested. The report added that Apple has been discussing the tie-up for months.
Yangtze declined to comment, while Apple did not respond to Reuters’ requests for comment.
Earlier this month, Foxconn, another key Apple supplier, suspended its Shenzhen operations due to a surge in COVID-19 cases.
A persistent industry-wide shortage of chips has also disrupted production in the automotive and electronics industries, forcing some firms to scale back production.