Memory Chip Supply

Apple is pressing the Trump administration for permission to buy memory chips from CXMT, a Chinese company that sits on the Pentagon’s blacklist. The move comes as the company faces higher component costs that have already pushed up prices on several Mac and iPad models. The request highlights a difficult balance for Apple: protecting margins and keeping production stable while navigating U.S. national security scrutiny over suppliers tied to China. According to the Financial Times, the company has been working to secure approval to source chips from CXMT, based on information from six people familiar with the matter. Why the request matters CXMT is listed on the Pentagon’s Chinese Military Company roster, which identifies firms the U.S. government considers linked to China’s military. That makes the issue more than a routine supply chain decision, since American companies may need government clearance before dealing with such suppliers. Apple is also said to be looking at YMTC under similar constraints, which shows how limited its options can become when global memory supply tightens. In practical terms, the company is trying to widen its sourcing options without crossing a regulatory line that could trigger political and security concerns. Costs are already showing up in product pricing Apple recently raised prices on some Mac and iPad models, saying the increases were driven by higher memory and storage costs. Tim Cook echoed that pressure in an interview with The Wall Street Journal, saying Apple had little room to maneuver as component prices climbed. Cook also signaled that no sourcing option should be ruled out if the rules allow it. He said, “I think everything needs to be on the table,” and added, “I think we should look at all supply.” Those comments now appear closely aligned with the company’s reported lobbying effort. If Apple can secure access to additional supply, the move could ease some of the financial strain created by the global memory shortage and help keep manufacturing on track. What makes the situation sensitive Apple first approached the U.S. Commerce Department about a month ago, before escalating its efforts to gain approval from the Trump administration. That timeline suggests the company sees the matter as urgent, not simply strategic. The sensitivity comes from the fact that CXMT and YMTC are not banned outright in the way some observers might assume, but they remain under intense U.S. scrutiny because of their Pentagon designation. For Apple, that means the next step depends less on market demand than on regulatory consent. The broader backdrop is a tightening memory market that is forcing technology companies to rethink sourcing plans. For Apple, the stakes are especially high because supply decisions can quickly ripple into pricing, production, and the company’s ability to keep new and existing devices moving through its manufacturing pipeline. Company Status Apple Relevance CXMT Listed on the Pentagon’s Chinese Military Company roster Apple is seeking approval to buy its memory chips YMTC Also on the Pentagon’s Chinese Military Company roster Another potential China-based memory source under scrutiny For now, Apple’s effort remains centered on winning over U.S. officials. Until that approval arrives, any deal with CXMT would remain politically sensitive and tied to the wider contest over technology supply chains between the U.S. and China. Source: www.indiatoday.in

Apple Seeks Trump Approval to Buy Restricted China Chips Amid Rising Costs