Samsung might supply fewer chips to Apple in order to diversify the company’s supply chain

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In order to alleviate supply shortages, new information suggests that Apple is attempting to diversify its sources of memory chip supplies. Cooperating with more companies would also help Apple to lessen its dependence on just a few companies and have a few backup manufacturers in case there are shortages or issues.

For future iPhones, Bloomberg (via SamMobile) claims that Apple may want to diversify its supply chain for memory chips. As of right now, Samsung and SK Hynix Inc. are the primary suppliers of memory chips to Apple. Apple could reduce its reliance on just a few suppliers by forming alliances with additional service providers.

Chinese semiconductor Yangtze Memory Technologies has reportedly been in talks with Apple, and tests have been conducted to see if the company can meet Apple’s standards. The Wuhan-based semiconductor company was founded in 2016. Tsinghua Unigroup, the world’s largest semiconductor manufacturer, has invested in the company, which is only a few years old.

Also read: Touch ID won’t be available on iPhones in 2023

According to Digitimes, Yangtze Memory Technologies’ chips have already passed Apple’s validation tests. In May, the company plans to begin producing and supplying chips in small quantities. According to the report, the company is attempting to persuade Apple that it is ready and equipped to begin ramping up production in order to meet Apple’s demands.

As a result of a reported generation gap between the company’s memory chips and those from Samsung and other suppliers, these chips are expected to be used in cheaper and more affordable devices, such as Apple’s iPhone SE and perhaps the standard iPad. Users aren’t likely to notice any differences between these chips, given that Apple is well-known for its excellent device optimization capabilities. As demand for the new iPhone SE 2022 is extremely weak, Apple has decided to reduce production of the device.

Also read: Apple has released iOS 15.4 which fixes a major iPhone issue

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