Bloomberg News reported on Wednesday that Apple, Inc. is looking into new suppliers for memory chips after an output disruption with their Japanese supplier.
Japan-based Kioxia Holdings Corp has been supplying flash memory chips to Apple. However, last month, the company reported that two of its manufacturing facilities had been compromised, adding that this would result in reduced production.
Apple is now testing sample NAND flash memory chips from China-based Yangtze Memory Technologies Co. The report added that Apple has been working on the tie-up for months.
Yangtze declined to comment, while Apple did not respond to Reuters’ requests for comment.
Foxconn, another key Apple supplier, suspended its Shenzhen operations earlier this month due to a surge in COVID-19 cases.
A persistent industry-wide shortage of chips has also disrupted production in the automotive and electronics industries, forcing some firms to scale back production.