Apple shelves plan to use China's YMTC chips as Uncle Sam continues to clamp down on Middle Kingdom tech

Apple has shelved plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its devices, Nikkei Asia reported on October 17 citing sources.

The iPhone maker's decision comes days after the latest round of US export controls against the Chinese tech sector. US lawmakers have also warned Apple of intense scrutiny from Congress in case it procures memory chips from the Chinese semiconductor manufacturer for the new iPhone 14.

The firm had originally planned to start using YMTC's chips as early as this year which are at least 20 percent cheaper, according to the report.

“Apple is playing with fire. It knows the security risks posed by YMTC," Marco Rubio, Republican vice-chair of the Senate intelligence committee, recently told the Financial Times.

YMTC's chips have not yet been used in Apple products, sources told Nikkei Asia.

Biden administration on October 7 placed YMTC on the so-called Unverified List, the report said, comprising firms whose end users US officials cannot verify.