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China Iphone Apple Hardware

Apple Bows To Pressure, Drops Plan To Buy Chinese Memory Chips (appleinsider.com) 67

Following increased U.S. export controls against working with Chinese companies, Apple has halted plans to use YMTC chips in the iPhone. AppleInsider reports: According to Nikkei Asia, YMTC flash memory is at least 20% cheaper than that of rivals, and the company's 128-layer 3D NAND chips are the most advanced by a Chinese company. They remain reportedly one or two generations behind the chips made by Micron and Samsung, both of which are known to be working with Apple. Nikkei Asia claims that Apple had completed is months-long testing and verification. Political pressure and criticism from US policymakers made it abandon the plan.

"The products have been verified, but they did not go into the production lines when mass production of the new iPhone began," an unspecified source told Nikkei Asia. Reportedly, the intention had been to initially use YMTC chips only for iPhones being sold in China. Another unnamed source, though, claimed that Apple was considering ultimately buying 40% of all its worldwide iPhone NAND flash memory from the company. "YMTC is government-subsidized so they can really outprice competitors," said another source.

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Apple Bows To Pressure, Drops Plan To Buy Chinese Memory Chips

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  • by ghoul ( 157158 ) on Monday October 17, 2022 @09:32PM (#62975541)
    CHIPS cough ACT
    • Ponch and Jon are protecting American businesses!

    • Free Trade. All Govts in free trade agreements and GATT have agreed not to subsidize industries and farm produce amongst other things. So USA passes increased farm subsidy bill, Chips and semi on top of generous deductions and allows Via Cayman Island tax evasion/minimization = whatever you call it. Europe should be kicking up a stink, but are wimps. They should increase tariffs in response. Sure the Chinese cheat too, but raw energy cost is now biting them hard, on top of flooding and drought. Honestly, b
  • by rsilvergun ( 571051 ) on Monday October 17, 2022 @09:34PM (#62975551)
    So it's no surprise there 20% cheaper. Frankly I'm surprised it's only 20%. Japanese did the same thing to our radio industry back in the 50s and 60s.

    At this point automation has gotten to a level where the cost of Labor really isn't the factor anymore. We learned that when Motorola moved there manufacturing to the states briefly in order to benefit from faster lead times on cell phones. They did move it back to China but not so much for the labor but because they can pollute as much as they want there.

    Thing is you can bring the manufacturing back but the jobs aren't coming. They'll be a handful of them but we're never going to have the kind of numbers we used to see. And although Tesla had a hard time with automation Ford and GM and Toyota are all making strides there.
    • by fermion ( 181285 )
      Labor is always the driving factor. We saw this when industry tried to build a factory in the Midwest, where no one has a decent education and no deftly educated person would want to live

      In my younger days, I automated production. What it usually meant was instead of 10 people who barely graduated high school you had to hire three who were responsible at twice the cost per person. If you could get three responsible people.

      In the US we would be ok if we were paying $15 a hour to an educated population. B

      • Re: (Score:1, Insightful)

        by Anonymous Coward

        All the while rents are doubling yearly. Yes, someone who may not be college educated needs to pay bills too... and if they can't afford to work to make ends meat, they are high-tailing it somewhere else so they can.

        If restaurants and businesses were smart in urban areas, they would be slamming the local city council and demanding rent controls, subsidized apartments, and a cap on how high rents can be raised per time period. This would allow for people they can afford to live near there. But, in a typic

        • by fermion ( 181285 )
          Rents are doubling in places where people create an overwhelming demand by believing the deserve to live there. In Texas that is Austin. Every other city has a very reasonable rent and home costs

          Real example. I have rented a few times in my life. My first apartment was $350 a month. About 25% of my pay I then went to a much more expensive downtown location, but still about 25% of my pay. Then I did not rent for about a decade or so. What I found when I did rent again was I was able to get a place that cos

          • by jbengt ( 874751 )

            Rents are doubling in places where people create an overwhelming demand by believing the deserve to live there. In Texas that is Austin.

            Even in Austin, rents are currently rising at a rate that would take 4 years to double, 7 years afer accounting for general inflation.

        • by jbengt ( 874751 )

          All the while rents are doubling yearly.

          No [kvue.com]

          AUSTIN, Texas — At 19.6%, Austin is among the U.S. cities that have seen an increase year-over-year in the country, according to June housing data from Realtor.com.
          Miami took the top spot with a 37.4% increase, and Orlando took second with a 23.9% increase. Meanwhile, other cities that ranked high include San Diego with a 19.1% increase, Providence at 23.8%, Boston at 23.6% and New York at 21.1%.

      • But people who can't read or write want $15 an hour to move a plate from a table to a sink. There is a culture that says being educated is for losers, and it is the birthright to be given a home in San Diego.

        Because we've tied wage to cost of living. If $15 doesn't give enough money to pay rent for that someone moving that plate, you don't deserve the restaurant in your town. If $15 doesn't pay the heating bill for the person stocking your grocery shelves, you don't deserve the grocery store in your town. If a job doesn't pay the person to live there, then you shouldn't have that amenity. People want all the niceness without having to foot the bill for it. You can't have cake and eat it too.

        As for the educ

        • by jbengt ( 874751 )

          Well entry educated jobs should be looking at $35/hr at minimum and really should be looking near $45/hr (~$93k/yr).

          Very few college graduates get that much at entry into the work force, nor should they until they get experience and show that they can add that much value by their work. (Not that graduating college is a good proof of education.)

      • In my younger days, I automated production. What it usually meant was instead of 10 people who barely graduated high school you had to hire three who were responsible at twice the cost per person. If you could get three responsible people.

        Ahem.

        As a retired Embedded Designer who has automated more than a few Production Processes along the way, I say that, unless that "Process" is something like batching human pharmaceuticals, it shouldn't require multiple skilled Babysitters/Start-Button-Pushers; or the "Automation" is pretty craptastic, sorry!

        • by fermion ( 181285 )
          Machines need to be fed and cared for.
          • Machines need to be fed and cared for.

            True enough.

            But generally, the "Feeding" part is either accomplished by another machine/part of the same machine; or by one Type Epsilon (that was the worker-drones, IIRC) workers to push the "Fill Me" button; or to otherwise get stuff to the Maw of the Machine.

            Maintenance is usually spread across many Machines; so it is hard to say how much each one takes.

    • Re: (Score:1, Interesting)

      by Anonymous Coward

      Yes, damn those commies! China subsidize industry by:

      1. Educating their children, so they grow up to become employable, productive workers for industry to hire, thus increases labor supply to keep wages low!

      2. Building massing transport networks, so people can go to work cheaply without having to buy a car, further lowering their bargaining power to keep wages low!

      3. Having universal health care, so factories can spent less for buying health insurance for their workers, further reducing cost!

      4. Building ma

      • by iAmWaySmarterThanYou ( 10095012 ) on Monday October 17, 2022 @11:42PM (#62975807)

        7. Enslaving and raping the Uighur population

        8. Harvesting organs from political prisoners for high ranking CCP members

        9. Destroying Tibetan culture

        10. Devastating the environment

        11. Threatening all their neighbors and even countries that aren't neighbors

        12. Strip harvesting the oceans

        13. Building mini military bases all over international waters and claiming the South China Sea in violation of all international laws and norms

        14. Supporting Putin's attack on Ukraine

        15. Breaking their treaty with Britain, stealing Hong Kong and fucking over the people there

        16. Engaging in industrial espionage on a global scale unseen before in history

        17. Shipping endless supplies of fentanyl to the US like some Central American drug lords

        18. Creating a surveillance state the worst government actors in the west can only have wet dreams about

        Yup, China is awesome. Great place.

        • Facts modded to troll by the usual CCP 50 cent shills.

          If I was wrong or lying you could easily call me out. You Chinese commie shills never do respond. You can't. You just slam the censorship button.

          You're terrified anytime everyone is reminded of the truth about your evil commie masters.

    • The main problem is supply chains. If you have a circuit board, you can easily do pick and place at competitive prices in the west, but the actual PCB will still come from China (due to environmental issues). Similarly for much of the hardware and things like wiring looms. So even though it's competitive to do it in the west, logistically it's still a lot easier to just get a PCB assembler in Shenzhen to sort everything out for you. They can pick up a phone and get extra screws/resistors/hard to source IC f

    • Tell us again how the Chinese and Indians are stealing our jobs and womenfolk!

  • by Anonymous Coward

    Imagine a memory chip programmed to start inserting malicious code at a specific future time or via some trigger (like a certain pattern of data being written).

    Of course there are far easier ways to infect the supply chain but really the possibilities are endless.

    Not specifically because of China but in general we need to come up with better systems that can verify the hardware we use. It's not really the type of threat that would happen by some hack or whatever but with long term planning it could be a one

    • A hard wired logic bomb. Only a matter of time.

    • When you write your own compiler and tools chain from scratch in hand coded assembly on cpus designed and dabbed by your own loyal people on boards also built in house etc etc then you -might- be able to trust your systems. As long as none of your staff was compromised.

      Hardly worth it.

  • how many back doors were in those chips.
  • I buy 4-5PB of storage every third year as part of a multi-exabyte cloud. I would love to buy SSD for 20-40% of that. I would have never considered a Chinese vendor for quality concern, but Apple kinda just opened my mind. I am now researching YMTC as an option because of this article.

    This is fantastic!
  • by Miles_O'Toole ( 5152533 ) on Tuesday October 18, 2022 @03:45AM (#62976131)

    This might say something about Apple's commitment to quality, at least with respect to iPhones. They've always presented themselves as, a "premium price for a premium device" company. It looks like instead, their current business model is to just get down in the muck with the Dollar Store end of the cell phone market and grind out devices with a higher profit margin thanks to older, cheaper components.

    So it's government regulation forcing Apple to keep their quality up rather than the invisible hand of the market? Truly, we live in strange times.

    • by AmiMoJo ( 196126 )

      These are not low quality flash chips. We need to stop assuming everything from China is crap. That's why China is dominating the automotive battery market, their batteries are better AND cheaper than everyone else's because they put in the R&D while the rest of the world just assumed it would be able to win with a "premium" product.

      YMTC flash memory is good quality. It's also competitive on things like power consumption and endurance, both important in mobile devices.

      • These are not low quality flash chips. We need to stop assuming everything from China is crap. That's why China is dominating the automotive battery market, their batteries are better AND cheaper than everyone else's because they put in the R&D while the rest of the world just assumed it would be able to win with a "premium" product.

        YMTC flash memory is good quality. It's also competitive on things like power consumption and endurance, both important in mobile devices.

        Right.

        The ONLY reason they are cheap is because China is artificially-Subsidizing their low price. Period.

        Knowing what I know about the standards Apple holds its Vendors to, you can rest assured that the actual quality and reliability of this Flash is equal to, or better than, the Vendors from which they are already purchasing those same components.

        • by AmiMoJo ( 196126 )

          I'm not so sure, Apple doesn't have a great history of properly testing the durability of their products. Keyboards, screen hinges, batteries...

          Not saying that this flash memory isn't a quality product, it is. I'm just not convinced that Apple is good at testing things.

          • I'm not so sure, Apple doesn't have a great history of properly testing the durability of their products. Keyboards, screen hinges, batteries...

            Not saying that this flash memory isn't a quality product, it is. I'm just not convinced that Apple is good at testing things.

            Keyboards: A design issue that simply didn't show up until things got into the field. Happens. It was insanely amplified by internet trolls. Apple worked diligently to fix the design, and to make it right for affected Users, both in and out of Warranty. Haven't heard a peep for about 2 or 3 years; so. . .

            Screen Hinges: What was that; like 15 years ago? Give it a rest!

            Batteries: Everyone has problems with bad battery-batches. You're going to have to be more specific than just declaring "batteries". Plus, App

            • by AmiMoJo ( 196126 )

              Not testing your keyboard for normal amounts of dust is a pretty big oversight. It took them years to correct it, the membrane fix they tried didn't work. To make matters worse, the keyboard was riveted into the top part of the case, so the whole upper part of the laptop had to be replaced. The warranty didn't fix the design flaw, and once out of warranty it's only a matter of time until the replacement keyboard fails too.

              Screen hinges have been a problem since the 90s when they started making laptops.

              The i

              • Not testing your keyboard for normal amounts of dust is a pretty big oversight. It took them years to correct it, the membrane fix they tried didn't work. To make matters worse, the keyboard was riveted into the top part of the case, so the whole upper part of the laptop had to be replaced. The warranty didn't fix the design flaw, and once out of warranty it's only a matter of time until the replacement keyboard fails too.

                Screen hinges have been a problem since the 90s when they started making laptops.

                The issue with batteries wasn't a bad batch. Lithium ion batteries naturally degrade with use and after a while are unable to provide as much current as when they are new. That was well known but Apple ignored it, and the result was your iPhone would go from 50% battery to 2% in a second, or just crash entirely. They offered reasonable price replacements for a while, and degraded performance in software to prevent the worst of it.

                Ok, now I know you're just trolling.

                Goodbye.

    • Unless you're recording raw 4k video on your iPhone, then the flash performance required is really not that amazing. I imagine that a technology node 2 steps behind the current bleeding edge is more than sufficient for regular iPhone users.

      BTW Apple has always been good at making their products appear more premium than they really are. It's essentially their entire business model and why they make such obscene profits compared to their competitors.

      • Apple has always been good at making their products appear more premium than they really are.

        Apple has very nearly always been a premium computer company with superior product design. In that sense, Apple is like Cadillac or Lexus. Whereas most everyone else, who feels priced out, will choose an everyday marque and model, or will obtain a used or refurbished Apple device.

        I find there to be no reason to criticise a luxury company for being a luxury company. It even supports its phones with OS updates longer than any other major phone maker.

    • If you define premium as high end hardware, the iphone hasn't led the phone market for a number of years. It's possible to spend more money than the top iphone and get better cameras, better displays, better CPUs, more RAM more storage... etc. etc. In fact it's possible to spend less than an iphone and get some of that too. Apple are pretty good at picking the right parts for their hardware. They rarely use "high end" parts but they manage to grind a reasonable amount of apparent quality out of them regardl

    • LOL. "Premium Price for Premium Device" is something that clearly ignores the margins that Apple has had on the iPhone in the past. It may have been more expensive, but largely you're paying for software and external looks. Largely Apple's device hasn't been any more premium than that of any other device. Sure they released the glass back iPhone 8 *uuuuaaaeeehhhrrr* (sorry just jizzed in my pants at the premiumness), but otherwise the underlying hardware wasn't special.

      Now off to change my underwear.

    • This might say something about Apple's commitment to quality, at least with respect to iPhones. They've always presented themselves as, a "premium price for a premium device" company. It looks like instead, their current business model is to just get down in the muck with the Dollar Store end of the cell phone market and grind out devices with a higher profit margin thanks to older, cheaper components.

      So it's government regulation forcing Apple to keep their quality up rather than the invisible hand of the market? Truly, we live in strange times.

      This Flash is cheaper, not because it is shitty; but because China has put their thumb on the scale to make the price less than the competition.

      Apple simply can't afford the bad press from including an unreliable or poorly-performing component in the BOMs of Meelions of Devices.

  • Damn, I was hoping to see Apple products made illegal by US sanctions on China.

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