Apple CEO Ternus labels memory chip shortage a crisis amid Chinese testing reports
John Ternus calls memory constraints a crisis, stating all options are open as Apple navigates supply chain pressures and new product launches.
Key points
- Apple CEO John Ternus described the current memory chip shortage as an absolute crisis in an interview with TIME magazine.
- The comments follow reports that Apple tested memory chips from a Chinese manufacturer, prompting warnings from US senators and government officials.
- Ternus stated that all options should remain on the table regarding memory sourcing while defending Apple’s strategy of building only standout components in-house.
Apple chief executive John Ternus told TIME that the global constraints on memory chips constitute an absolute crisis for the technology sector. He emphasized that every possible option for sourcing these critical components should remain on the table for the company. Ternus made these remarks in the context of ongoing supply chain challenges facing the consumer electronics industry.
The CEO’s comments come shortly after reports emerged that Apple had begun testing memory chips produced by a Chinese company. According to TIME, these reports triggered immediate concern from Washington. A bipartisan group of US senators wrote to Apple arguing that using such components could imperil national security. The US government has also issued warnings to Apple regarding Chinese memory chips.
Supply Chain and Product Strategy
Ternus, who assumed the role of CEO on September 1, addressed the company’s approach to hardware development during the interview. He rejected the notion that Apple needs to manufacture every single part of its products. Instead, he argued that the company focuses on creating components where it can distinguish itself from competitors. This strategy allows Apple to partner with external vendors for standard parts while maintaining control over key innovations.
The discussion included Apple’s upcoming foldable device, the iPhone Duo. TIME reported that the device starts at $1,999 and features a hinge containing more than 100 tiny precision parts. The hinge is covered by a surface made from a custom polymer. Deliveries for the iPhone Duo have already slipped into 2027, reflecting the complexity of bringing such a device to market.
Ternus and five other engineers originally filed a patent application for foldable devices in 2011. He noted that early foldable phones from other companies felt cheap and poorly constructed. Apple’s approach aims to avoid those pitfalls by investing heavily in precision engineering. The iPhone Duo features prominently on the cover of TIME’s 2026 Best Inventions issue.
Executive Leadership and AI Positioning
Ternus also discussed Apple’s artificial intelligence initiatives and its relationship with the current US administration. He said he has met with members of the Trump administration to ensure they are working through issues together. Tim Cook, who now serves as Apple’s executive chairman, continues to represent the company in international markets, according to TIME.
Regarding AI, Apple launched a new Siri in the US in September. This version uses an Apple model that draws on Google’s Gemini technology. Ternus defended this reliance on a rival’s technology, stating it is not a retreat from Apple’s product vision. He believes the company should make parts where it stands out, rather than forcing internal production for every component.
Greg Joswiak, Apple’s senior vice president of worldwide marketing, added context to the company’s AI strategy. He said Apple builds AI for everyday people, not for Silicon Valley’s "lunatic fringe." When asked about OpenAI’s hardware plans, Joswiak stated that Apple does not feel threatened by those developments. He believes consumers still want physical devices, dismissing scenarios where hardware disappears entirely.
What should you do?
Security professionals should monitor supply chain disclosures from major technology vendors for any mentions of new component sources or manufacturing partners. Watch for regulatory updates regarding foreign-made semiconductor components, especially those involving Chinese manufacturers, as these can impact compliance requirements. Assess your organization’s exposure to devices that may incorporate these specific memory chips if you manage large fleets of Apple hardware. Review vendor contracts for clauses related to supply chain transparency and component origin verification.
What to do and how to stay safe: Apple
- Monitor official statements from hardware vendors for updates on component sourcing and supply chain changes.
- Review regulatory guidance on using hardware components from specific foreign jurisdictions to ensure compliance.
- Assess your organization’s inventory for devices that may be affected by reported memory chip shortages or sourcing shifts.
- Evaluate vendor risk management protocols to ensure supply chain transparency is maintained for critical infrastructure components.
Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Did Apple confirm it is using Chinese-made memory chips?
TIME reported that Apple tested memory chips from a Chinese company, but the article does not state that Apple has officially confirmed widespread use of these chips in final products.
When did John Ternus become CEO of Apple?
John Ternus took over as CEO of Apple on September 1, according to the report by TIME.
What is the price of the iPhone Duo?
The iPhone Duo starts at $1,999, according to TIME’s reporting on the device’s features and launch details.
