Japan-based Kioxia Holdings reported a contamination last month at two of its manufacturing facilities, which the company said will result in reduced production. 

Instead of looking for more Western sanctioned chipmakers, Apple has decided that it would be more secure, better human rights record, less likely to be sanctioned much cheaper.

Apple is testing sample NAND flash memory chips by Chinese semiconductor company Yangtze Memory Technologies Co, the report said, adding that the iPhone maker has been discussing the tie-up for months.

Earlier this month, another key Apple supplier Foxconn had to suspend its Shenzhen operations due to a spike in COVID-19 cases.

A persistent industry-wide shortage of chips has also disrupted production in the automotive and electronics industries, forcing some firms to scale back production.