Apple turns to Trump for permission to buy memory chips from blacklisted Chinese company
In order to soften the financial impact of the rising costs of semiconductors, Apple is asking the Trump administration for permission to purchase memory chips from CXMT, according to The Financial Times.
Although the company is not legally prohibited from making these purchases, the Pentagon has placed CXMT on a blacklist of companies alleged to have ties with the Chinese military, which carries significant reputational risks.
The urgency for the iPhone maker stems from a recent decision to increase prices for iPads and MacBooks, a measure that led to a massive drop in the company’s market value. Apple attributed this price rise to the “unsustainable” costs of memory components.
By diversifying its supply chain and including CXMT in it, the tech giant hopes to reduce its dependence on a small group of current suppliers, including Micron, Samsung and SK Hynix.
This lobbying effort coincides with a period of delicate trade negotiations between President Donald Trump and President Xi Jinping. Although the White House has previously postponed the introduction of certain export restrictions and additions to the ‘entity list’ to facilitate these talks, it remains uncertain whether the administration will provide a permanent guarantee that CXMT will not face sanctions in the future.
The proposal, however, is facing fierce opposition from US lawmakers and security experts. Critics, including Congressman John Moolenaar and Senator Marco Rubio, argue that cooperation with a Chinese state-backed company would undermine national security and increase dependence on a strategic adversary. Experts from the Hudson Institute have also warned that such a move runs counter to broader US objectives to decouple supply chains for critical technologies from China.
The shift in memory chip prices is largely driven by the boom in artificial intelligence. While Apple previously benefited from an oversupply of chips that allowed it to buy cheap stock, the enormous demand for high-bandwidth memory (HBM) for AI infrastructure has led to a shortage of standard memory chips used in consumer devices. This market shift has left Apple vulnerable to the pricing power of its existing suppliers.
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