Apple facing added pressure from U.S. Senators over potential Chinese memory chip deal
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Apple (NASDAQ:AAPL) is facing additional pressure from U.S. Senators as lawmakers in the chamber have asked members of the intelligence community to examine if a deal between the tech giant and Chinese memory chip maker Yangtze Memory Technologies poses national security concerns.
Senator Mark Warner, who chairs the Senate Intelligence Committee, and Senator Marco Rubio, the committee's vice-chair, wrote a letter to Avril Haines, the Director of National Intelligence, for a "public analysis and review" of Yangtze Memory Technologies and any risks it poses.
"[W]e write to convey that any decision to partner with YMTC, no matter the intended market of the product offerings developed by such a partnership, would affirm and reward the PRCâs distortive and unfair trade practices, which undermine U.S. companies globally by creating significant advantages to Chinese firms at the expense of foreign competitors," the lawmakers wrote.
They added that in 2021, the Biden Administration described Yangtze Memory Technologies as China's "national champion memory chip producer" and is supporting the Chinese Communist Party's efforts to counter U.S. innovation and leadership in the semiconductor industry.
Any potential partnership between Apple (AAPL) and Yangtze Memory Technologies would "endanger" the importance of a U.S. semiconductor industry and could risk "nullifying efforts to support it, jeopardizing the health of chipmakers in the U.S. and allied countries and advancing Beijingâs goal of controlling the global semiconductor market," the lawmakers wrote.
In addition to Senators Warner and Rubio, Senate Majority Leader Chuck Schumer and Senator John Cornyn also signed the letter.
Cupertino, California-based Apple (AAPL) did not immediately respond to a request for comment from Seeking Alpha.
Earlier this month, Apple (AAPL) was warned by Senator Rubio and Congressman Michael McCaul after they saw a report that the U.S. tech giant was looking into a deal with Yangtze Memory Technologies.
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.
Earlier this month, Apple (AAPL) told the Financial Times it does not use chips from Yangtze Memory Technologies in any product, but said it was "evaluating sourcing from YMTC for NAND chips to be used in some iPhones sold in China."
Yangtze Memory Technologies competes with other memory chip makers such as Micron Technology (MU) and Samsung Electronics (OTCPK:SSNLF).
On Wednesday, Bank of America said Apple (AAPL) is likely benefiting as "attractive" promotions from U.S. telecoms, incentivizing people to upgrade to the newly released iPhone 14 product line.