Apple might have to delay its new iPhone thanks to Chinese crackdown

John Hugh DeMastri, DCNF

Apple’s iPhone 14 may be delayed due to China’s crackdown on the shipment of parts which may be held or rejected by Chinese customs officials, Nikkei reported Friday.

Apple told its suppliers on Friday to ensure compliance with the long-standing regulations that pieces not be labeled “Made in Taiwan” after a facility run by Taiwanese Apple assembler Pegatron was inspected by Chinese authorities, according to Nikkei. Apple told suppliers to make contingency plans to avoid further disruptions to the supply chain, Nikkei reported.

If Apple does not maintain strict compliance, regulatory issues may lead to supply chain disruptions that could impact the iPhone 14 as well, Nikkei reported.

Apple is planning to announce the iPhone 14 in September, AppleInsider reported Sunday. This follows the one-month delay of iPadOS 16, the operating system behind Apple’s iPad, which is typically announced alongside the corresponding iPhone operating system iOS, due to technical issues, according to The Verge last Wednesday.

House Speaker Nancy Pelosi met with CEO Mark Liu of Taiwan Semiconductor Manufacturing Company (TSMC), which produces 90% of the world’s cutting-edge chips — including those supplied to Pegatron — during her visit, according to Fortune. China announced on Friday that it would suspend cooperation with the United States on a variety of issues ranging from climate change to crime prevention. (RELATED: ‘Routine’: China Blockades Taiwan With Renewed Military Drills)

 

While Taiwan is the dominant force in semiconductor chip manufacturing, the U.S. accounts for over 80% of the world’s supply of chip design equipment and over half the intellectual property for chip designs, according to Fortune. Apple alone accounts for a quarter of TSMC’s revenue, with U.S. customers in general making up 64% of all sales, Fortune reported.

Amid the passage of a bill that subsidized the fabrication of semiconductor chips in the U.S., TSMC has spent $12 billion on a plant in Arizona, while the South Korea-based Samsung is building a record-setting $17 billion plant in Texas, according to Fortune. Jon Bathgate, investor at semiconductor-focused investment firm NZS Capital, told Fortune that he believes this is a signal that chipmakers from both Taiwan and South Korea are betting on U.S. support as tensions with China escalate.

Apple did not immediately respond to a Daily Caller News Foundation request for comment.

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