The Trump administration is pushing Apple to avoid Chinese memory suppliers as the iPhone maker looks for ways to deal with a global memory shortage and rapidly rising component costs.
US Commerce Secretary Howard Lutnick said the administration opposes Apple sourcing memory from China and has communicated that position directly to the company. He said Apple should find other solutions rather than have major American companies rely on Chinese memory.
Why is Apple Considering Chinese Chips?
Apple has been testing memory chips from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), according to the Wall Street Journal. The chips could potentially be used in Apple devices sold in China.
The move comes as AI data centers consume growing amounts of memory, contributing to shortages and sharply higher prices. Apple and other electronics companies have consequently faced increased component costs.
Apple COO Sabih Khan declined to confirm whether the company was testing Chinese memory, but said the scale of the shortage means Apple has to consider all available options. He also noted that memory requires relatively little customization compared with many other Apple components.
Micron and US Senators Push Back
US memory manufacturer Micron has lobbied against Apple’s plans, arguing that competition from state-supported Chinese suppliers could damage domestic semiconductor manufacturing and undermine efforts to expand production in the United States.
A bipartisan group of senators has also urged Apple CEO Tim Cook to abandon plans to use memory from CXMT or YMTC, including in devices sold outside the United States.
Both CXMT and YMTC appear on the Pentagon’s Section 1260H list of Chinese military companies. YMTC has also been on the US Commerce Department’s Entity List since 2022.
Apple Faces a Difficult Supply Decision
US rules restrict sharing certain product information with Chinese companies, but Apple can still purchase off-the-shelf memory components without the same level of customization.
The dispute puts two priorities in conflict: easing the memory shortage and controlling consumer electronics costs versus strengthening domestic semiconductor manufacturing and reducing reliance on China.
The administration has separately promoted Apple’s US manufacturing commitments. Trump announced in June that Apple would work with Intel on US chip design and manufacturing, while Apple has also committed to sourcing all cover glass for iPhones and Apple Watches from the United States.
The post Trump Administration Tells Apple to Stay Away From Chinese Memory Chips appeared first on ProPakistani.
