The US government has advised Apple to steer clear of Chinese memory chip suppliers, adding new strain to global supply chains amid rising geopolitical concerns and tighter export controls, with Apple assessing Chinese technology amid ongoing industry shortages.
The United States government has advised Apple against buying memory chips from China, adding fresh pressure to one of the world’s most closely watched supply chains. According to GuruFocus, the warning reflects wider concern in Washington over dependence on Chinese-made components at a time of heightened geopolitical tension and tighter scrutiny of advanced technology flows.
The move comes as Apple has been testing memory from Chinese suppliers including ChangXin Memory Technologies and Yangtze Memory Technologies, according to MacRumors and Tom’s Hardware. Those reports say the company has not finalised any deal, but has been assessing the chips technically while also weighing how to cope with a global shortage that has pushed up costs across the industry. Apple’s chief operating officer, Sabih Khan, has said the company must consider all options because of supply constraints, without confirming the Chinese testing.
The political backdrop is becoming harsher. Tom’s Hardware reported that Representative John Moolenaar has pressed the federal government to enforce the Foundry Due Diligence Rule, which is meant to ensure chipmakers verify who their customers are and how their products will be used. In a separate report, lawmakers including Moolenaar and George Whitesides called for tougher restrictions on memory from Chinese firms such as CXMT and YMTC, arguing that allied supply chains should not become dependent on companies tied to China’s military or subject to U.S. export controls.
For investors, the news lands alongside mixed signals on Apple’s valuation and ownership patterns. GuruFocus said the shares were priced above its GF Value estimate, with the stock trading at $305.93 against a fair value figure of $283.35, and that the price-to-earnings ratio remains above its five-year median. The same analysis gave Apple a GF Score of 96 out of 100, helped by strong profitability and growth, but noted weaker financial strength. It also said insiders had not bought recently and had sold $16.0 million of stock over the past three months.
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