Apple is lobbying the Trump administration for approval to purchase memory chips from Chinese manufacturer CXMT, despite the company being on the Pentagon’s blacklist due to alleged ties with the Chinese military, according to the Financial Times.
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Based on the report, Apple is seeking assurances from the Department of Commerce and other administration officials that buying chips from CXMT will not lead to future restrictions. The iPhone maker is attempting to ease the pressure caused by rising memory chip prices.
Apple is not prohibited from acquiring chips from CXMT or another Chinese memory producer, YMTC. However, both companies are listed on the Pentagon’s roster of Chinese military firms, which carries reputational risks, though it does not broadly ban commercial transactions.
These efforts come after Apple raised prices on MacBook and iPad by 20%, citing higher memory costs. The company is looking to diversify its supply chain amid tightening industry supply and strong demand tied to AI, which continues to push DRAM prices upward.
CXMT has rapidly emerged as China’s national leader in the DRAM market and recently received approval for a stock listing on the Shanghai exchange. The company aims to compete with established suppliers by expanding production with state backing, as China works toward building a more self-sufficient semiconductor industry.
Outside China, the global DRAM market remains dominated by Samsung Electronics, SK Hynix, and US-based Micron Technology. Apple works with all three suppliers for memory in its devices, so adding CXMT would mark a significant shift in its procurement strategy.
Micron has been one of the main beneficiaries of the AI boom: strong demand for high-bandwidth memory (HBM) for AI servers has led to shortages in the broader memory market. This shortage has also driven up prices for conventional DRAM used in smartphones, PCs, and other consumer electronics.
SanDisk, spun off from Western Digital, remains focused on NAND flash memory rather than DRAM, supplying storage chips for smartphones, PCs, and data centers. Although it does not directly compete with CXMT, rising memory prices and shifting supply dynamics in the semiconductor industry could impact demand and pricing in both the DRAM and NAND markets.
According to the report, it remains unclear whether the White House will support Apple’s request, especially given Congressional opposition to expanding commercial ties with Chinese semiconductor companies viewed as strategically important.
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