Apple has ramped up pressure on the Trump administration to secure approval for purchasing memory chips from Chinese company CXMT, which is blacklisted by the Pentagon over alleged ties to the People's Liberation Army. The move, reported by the Financial Times, comes after Apple raised prices on Macs and iPads due to surging memory chip costs.
Apple's request to the US government for CXMT chips
According to six people familiar with the matter, Apple contacted the Commerce Department a month ago before expanding its lobbying efforts to the White House. The goal is to obtain a waiver allowing the company to buy memory chips from CXMT and YMTC, another Chinese chipmaker, both on the so-called 1260H blacklist. This list includes dozens of Chinese entities with alleged military ties that undermine US national security. Apple is not formally banned from buying from these companies, but Pentagon restrictions complicate transactions, requiring special licenses.
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Mac and iPad price increases push Apple to seek alternatives
This week Apple significantly raised prices on several products, including Macs and iPads, citing increased memory and storage chip costs. CEO Tim Cook, in a Wall Street Journal interview a week earlier, stated the company had no choice but to raise prices. Cook hinted at Apple's interest in buying chips from Chinese firms if granted approval. When asked whether restrictions should be loosened, Cook said: “I think everything needs to be on the table. We should look at all supply.”
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Geopolitical and commercial implications of the request
Apple's request comes amid US-China tensions in the semiconductor sector. CXMT specializes in DDR4 and DDR5 RAM, crucial for device manufacturing. Gaining approval could ease Apple's cost pressures but raises national security concerns. The outcome may influence the global chip market, already facing supply shortages. Apple aims to diversify sourcing beyond traditional suppliers like Samsung and Micron. For more details, read the related article on Apple's request for CXMT chips.
External link: Original Financial Times article (paywall).
