Apple forced to cancel plans to buy memory chips from China after Biden’s crackdown

Apple was forced to scrap plans to use Chinese memory chips in its iPhones after US President Joe Biden slammed new tech sanctions on Beijing.

The White House has imposed new restrictions on China’s semiconductor sector to block its access to advanced graphics and storage processors.

US officials have also placed memory chip maker Yangtze Memory Technologies on a blacklist, known as the Unverified List, which lumps together new licensing requirements for any American company wishing to trade in it.

Apple had considered using Yangtze memory chips in its future iPhones, which could undercut designs from competitors like Samsung.

However, Nikkei reported that those efforts have now been put on hold following the latest round of US restrictions. Apple did not respond to a request for comment.

New rules from US President Biden have wreaked havoc among Chinese and Western semiconductor companies. The recent restrictions prevent US citizens from supplying or working on technology that could help China acquire high-performance semiconductors.

This has forced companies to terminate contracts with Chinese chip makers and withdraw American personnel from operations with Chinese companies.

The new White House rules are expected to affect hundreds of employees and executives of leading semiconductor manufacturers who hold dual US citizenship or green cards.

Dutch chipmaker ASML warned employees by emailing all US employees and green card holders that they are “prohibited from providing certain services to advanced factories in China.”

“U.S. employees must refrain — directly or indirectly — from serving, shipping or assisting customers in China until further notice.” Shares of ASML fell 6.5 percent in early trade on Monday.

The new US rules have wiped billions from the market value of American companies that make software tools for the semiconductor industry, including Cadence Design Systems and Synopsys, amid fears they will have to stop working in China.

US-listed Applied Materials, which sells software to chipmakers, warned that the new restrictions would result in an immediate loss of business worth between $250 million and $550 million.

The US Industry and Security Bureau warned that companies on its updated unverified list could be moved to a stricter blacklist, the Company List, if they are deemed not to be compliant with US government controls.

Chinese companies like Huawei have been added to the company list, effectively blocking US companies from doing normal business with it. Apple forced to cancel plans to buy memory chips from China after Biden’s crackdown

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