Trump Administration Urges Apple to Avoid Chinese Memory Chips
The Trump Administration is advising Apple to refrain from purchasing memory chips from Chinese manufacturers Yangtze Memory Technologies and CXMT. Instead, it prefers that Apple source these components from American companies Micron Technology and Sandisk. Commerce Secretary Howard Lutnick affirmed this stance in discussions reported on October 1.
As a result of this news, shares of Korean manufacturer SK Hynix experienced a 4% increase by 10 a.m. ET on Monday. The administration indicated that while reshoring semiconductor production to the U.S. is a priority, sourcing from South Korea could serve as a viable compromise.
Currently, SK Hynix is trading at 8.1 times trailing earnings, considerably lower than Micron and Sandisk, which are priced at approximately 21.7x and 21.4x respectively. Analysts predict an annual earnings growth rate of around 86% for SK Hynix, positioning it favorably among its competitors.
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