Japan-based Kioxia Holdings — a key
supplier of flash memory chips to Apple — had reported a contamination last
month at two of its manufacturing facilities, which the company said will
result in reduced production.
Apple is now testing sample NAND flash
memory chips by Chinese semiconductor company Yangtze Memory Technologies, the
report said, adding that the iPhone maker has been discussing the tie-up for
months.
Yangtze declined to comment and Apple did
not immediately respond to Reuters' requests for a comment on the report.
Earlier this month, another key Apple
supplier Foxconn had to suspend its Shenzhen operations due to a spike in
COVID-19 cases. Foxconn started some production late last month at its Shenzhen
campuses after arranging for some staff to live and work in a bubble, an
arrangement requested by the local government as it battles the spread of
COVID-19.
Only a small part of Foxconn's production
for Apple's iPhone in China takes place in the southern city of Shenzhen, with
the majority happening in Zhengzhou in the central province of Henan, according
to sources.
A persistent industry-wide shortage of
chips has also disrupted production in the automotive and electronics
industries, forcing some firms to scale back production. © Reuters
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