Apple Lobbying U.S. Government to Buy Memory Chips From Blacklisted Chinese Supplier

Apple is reportedly lobbying the Trump administration for clearance to purchase memory chips from a blacklisted Chinese supplier. The push comes as the company looks to ease pressure from soaring component costs that recently forced widespread price increases across its product lineup.



According to the Financial Times, Apple approached the Commerce Department and other administration officials to seek clearance to buy RAM from ChangXin Memory Technologies (CXMT). The Chinese chipmaker is currently on the Pentagon's 1260H list, a registry of companies with alleged ties to the People's Liberation Army. While being on this specific list does not legally bar U.S. companies from doing business with CXMT, it carries significant reputational risks and opens the door to intense political scrutiny.


The lobbying campaign underscores the severity of the global memory shortage currently battering the consumer electronics industry. As major suppliers like Samsung, SK Hynix, and Micron allocate massive portions of their production capacity to high-bandwidth memory for artificial intelligence data centers, traditional DRAM availability has plummeted. Apple CEO Tim Cook previously warned that these constraints were unsustainable, describing the situation as a hundred-year flood for the supply chain. Outside China, Apple relies on Micron, Samsung, and SK Hynix for the DRAM used in its devices, leaving it dependent on a highly concentrated group of suppliers.

That financial strain reached a breaking point this week when Apple raised prices across its Mac, iPad, and home device lineups. The rare mid-cycle price hikes triggered a massive selloff, erasing $263 billion from Apple's market capitalization in a single day. Adding another memory supplier could ease pressure from soaring component costs and potentially help the company avoid further price increases on future hardware. CXMT, which receives backing from the Chinese government and recently received regulatory approval for a Shanghai stock market listing, is actively positioning itself as a domestic alternative capable of challenging established memory incumbents.

Gaining the administration's support may prove difficult. The Commerce Department had previously considered moving CXMT to a stricter trade blacklist before pausing due to broader geopolitical negotiations. The Pentagon also briefly removed CXMT and YMTC from its military company registry earlier this year, only to quickly reinstate both manufacturers following internal White House frustration over the move.

Lawmakers are already voicing strong opposition to Apple's request. Representative John Moolenaar, the Republican chair of the House China committee, called the potential partnership a grave mistake that would make the American tech industry increasingly dependent on China.


Apple faced a similar controversy in 2022 when it explored purchasing NAND flash storage from Yangtze Memory Technologies for iPhones sold in the Chinese market. The company ultimately abandoned those plans after facing severe bipartisan backlash in Washington. It remains unclear whether the administration is willing to offer Apple any guarantees that CXMT will avoid tighter export controls in the future.