8 Solutions for Mitigating the Threat of an Apple-YMTC Deal

Last week China Tech Threat and the Coalition for a Prosperous America released the report Silicon Sellout: How Apple’s Partnership with Chinese Military Chip Maker YMTC Threatens American National Security. In our first blog post, we detailed Apple’s motivations for doing business with YMTC. Our second post outlined the risks of this partnership. Policymakers inside the U.S. government have multiple options to mitigate the damage from a YMTC-Apple deal. Three of them are most important: 1) Restrict technology exports to and imports from YMTC (Best option) The best, most effective protection of national security restricts U.S. technology exports to and imports from YMTC. This requires three steps: (a) adding YMTC to the Entity List; (b) creating a Foreign Direct Product… Read More

Silicon Sellout Paper: The Five Risks of An Apple-YMTC Deal

On June 8th China Tech Threat (CTT) and the Coalition for a Prosperous America (CPA) released Silicon Sellout, a report detailing the dangers of Apple’s decision to source memory chips for the iPhone from Chinese state-backed chipmaker YMTC. Our first blog post recounted the reasons Apple is entering into this deal. To recap, the company is likely able to purchase YMTC’s state-subsidized chips more cheaply than it can other chipmakers’ products. It’s also possible that the Chinese government has pressured Apple to choose YMTC chips as a condition of market access – a proposition that Apple would be hard-pressed to be reject given the size of the Chinese market. Apple may reap a short-term financial reward from a deal with… Read More

Silicon Sellout Report: Why Apple is Making a Deal with Chinese Semiconductor Manufacturer YMTC

Today, the Coalition for a Prosperous America and China Tech Threat have released Silicon Sellout, a new report detailing how Apple’s decision to use chips made by Chinese semiconductor manufacturer YMTC threatens to harm Americans’ security and privacy and reshape the global semiconductor market in China’s favor.  To recap: Right now Apple has entered into an agreement with YMTC to source YMTC chips for the iPhone. This deal will have serious negative consequences for both Americans and the world: It will concentrate more chip production inside China at a time when supply chains are already vulnerable to Chinese lockdowns and government diktats. It will create major security and privacy risks to Apple users all over the world. It will increase… Read More