Apple Wants to Buy Blacklisted Chinese Memory. Micron Has Nothing to Worry About

Yahoo Finance ·

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.

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Reports that Apple is considering purchases of blacklisted Chinese memory stimulate both supply-chain and regulatory risks. U.S. export controls and Entity List sanctions have restricted Chinese memory companies' access to advanced equipment, but if Apple demand materializes it could produce significant changes in those companies' revenue and credibility. Meanwhile, demand for high-performance memory is likely to remain with U.S. vendors such as Micron due to their technical advantage and regulatory protection. As a result, a situation is expected in which short-term gains for Chinese companies coexist with increased regulatory and compliance risks for global equipment suppliers and IT firms.

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