Apple is in negotiations to purchase memory chips from Chinese semiconductor companies that are on the U.S. Defense Department's blacklist, according to a report by Bloomberg on July 1, citing sources familiar with the matter.
The report indicates that Apple is exploring options to acquire memory components from Changxin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC) for devices sold in China. However, sources noted that no agreements have been finalized as negotiations are still ongoing.
Additionally, Apple’s leadership, including CEO Tim Cook, has reportedly requested that U.S. Treasury Secretary Scott Morrison and other key officials from the Trump administration help mitigate the political fallout from transactions with Chinese memory semiconductor firms.
CXMT and YMTC were added to the U.S. Defense Department's list of companies supporting the People's Liberation Army in 2025 and 2024, respectively, raising suspicions from the U.S. government. YMTC was also placed on the U.S. Commerce Department's blacklist in 2022, prohibiting it from acquiring technology from U.S. suppliers without special permission. While Apple does not require formal approval from the U.S. government to purchase products from CXMT and YMTC, the heightened tensions between the U.S. and China could lead to significant backlash regarding national security concerns.
Some Trump administration officials and hardline lawmakers have expressed opposition to such transactions. Rep. Brian Mast (R-Fla.), chair of the House Foreign Affairs Committee, stated, "CXMT and YMTC are military enterprises that accelerate the Chinese Communist Party's goals of military modernization and AI dominance. If this decision (to purchase memory from China) is allowed, it would undermine President Trump's policies on supply chain security and the AI arms race."
Apple's move comes amid a surge in demand for memory semiconductors driven by the recent AI boom, which has caused prices to skyrocket. In response to rising memory chip costs, Apple raised prices on several key products, including Macs and iPads, last week.
If Apple proceeds with transactions with CXMT and YMTC, its sources for memory semiconductors would expand from three (Samsung Electronics, SK Hynix, and Micron) to five, according to Bloomberg.
* This article has been translated by AI.
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