Commerce Secretary Opposes Apple's Chinese Memory Chip Plan

The Trump administration is pushing back against Apple's efforts to source memory chips from Chinese suppliers as the company looks for ways to ease an AI-driven supply crunch. Commerce Secretary Howard Lutnick said after touring Apple's Houston manufacturing facility that the administration does not support the move, according to The Wall Street Journal.



"The Trump administration is not in favor of that," Lutnick said. "There have to be other solutions to the memory issue, but it's not great American companies using Chinese memory." Asked whether he has delivered that message directly to Apple, he replied, "Plainly."


Apple has been testing memory chips made by ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) as a way to offset soaring prices and tight supply, a prelude to potentially including them in Apple devices sold in China. HP and Acer already use CXMT memory in hardware sold outside the U.S., the Journal reported.

U.S. rules require American companies to secure a license before sharing product information with CXMT or YMTC, information the companies would need if they were to produce customized chips for Apple. However, Apple can purchase off-the-shelf parts from the companies without a license.

Chief Operating Officer Sabih Khan declined to confirm the Chinese memory testing but said Apple "has to look at all options," including expanding output from existing suppliers in the U.S. He also noted there "isn't a lot of customization" in memory components, suggesting Apple could instead use off-the-shelf chips from Chinese suppliers.

Lutnick's remarks also come amid growing political pressure on Apple over its memory sourcing plans. Micron Technology has urged the White House to block Apple from using Chinese memory, warning it would harm U.S. production. Bipartisan senators also pressed Apple to reject Chinese memory chips by August 21.


White House spokesman Kush Desai said reshoring semiconductor manufacturing remains a top priority. Lutnick said the administration is pressing Apple "relentlessly, more and more and more" to bring additional production into the U.S. and predicted the company would move "step by step, and piece by piece" to bring significant portions of its business home.

Lutnick's comments came a day after he joined Apple executives at the opening of the company's new Advanced Manufacturing Center in Houston, part of Apple's previously announced $600 billion U.S. commitment. During interviews at the event, Khan also pointed to Apple's plans to add a Mac mini assembly line in Texas.