Apple warned by GOP lawmakers of further ire if it gets chips from Chinese company: report

iPhone 13 Midnight against white background. New smartphone from Apple company close-up.

Seremin/iStock Editorial via Getty Images

Apple (NASDAQ:AAPL) has been warned by Republican lawmakers that it will face additional scrutiny from Congress if the tech giant obtains memory chips from Yangtze Memory Technologies for the iPhone, according to the Financial Times.

The news outlet noted that Senator Marco Rubio, the vice chair of the Senate intelligence committee and Michael McCaul, a Representative from Texas on the foreign affairs committee, were surprised when they saw media reports that Apple (AAPL) was looking at the Chinese semiconductor company.

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

“Apple is playing with fire,” Rubio told the FT in an interview. “It knows the security risks posed by YMTC. If it moves forward, it will be subject to scrutiny like it has never seen from the federal government. We cannot allow Chinese companies beholden to the Communist party into our telecommunications networks and millions of Americans’ iPhones.”

Apple (AAPL) did not immediately respond to a request for comment from Seeking Alpha.

Cupertino, California-based Apple (AAPL) told the FT it does not use chips from Yangtze Memory Technologies in any product, but added that it was “evaluating sourcing from YMTC for NAND chips to be used in some iPhones sold in China.”

McCaul furthered Rubio’s comments, adding that Yangtze Memory Technologies has “extensive” ties to the Chinese Communist party and military. The 60-year-old lawmaker added that Yangtze is breaking export control laws selling to Huawei, which was severely restricted by both President Trump and President Biden from doing business in the U.S. over national security concerns.

Several other U.S. lawmakers have expressed their concern over Yangtze Memory Technologies with U.S. Commerce department and Secretary Gina Raimondo, the FT added, citing people familiar with the matter.

On Thursday, Loup Ventures analyst Gene Munster Apple’s (AAPL) decision to hold pricing steady for its iPhone 14 will allow the tech giant to pick up market share.

Leave a Reply

Your email address will not be published. Required fields are marked *