Apple Appeals for Approval to Buy Blacklisted Chinese Memory Chips

Amid a severe global memory chip shortage and soaring prices, U.S. technology giant Apple is reportedly pursuing a controversial strategy to safeguard its product lineup. According to a report by the influential British newspaper Financial Times, Apple is seeking special authorization from the Trump administration to purchase memory chips from a Chinese company that has been placed on a U.S. blacklist.

The report states that Apple intends to source memory chips from China's leading memory chip manufacturer, CXMT. The company was recently added to the U.S. Department of Defense's 1260H List, which includes entities identified by the Pentagon as having ties to China's People's Liberation Army (PLA).

Legal Hurdles and Apple's Lobbying Efforts

Being included on the Pentagon's 1260H List does not automatically prohibit U.S. companies from doing business with listed firms. However, commercial dealings with such companies could expose businesses to significant legal and trade-related consequences from the White House. In addition, the U.S. Department of Defense is prohibited from entering into direct contracts with companies on the list or procuring their products and services through third parties.

To overcome these regulatory obstacles and secure approval from the White House, Apple has reportedly been lobbying intensively in Washington over the past month. The company has already approached the U.S. Department of Commerce and continues discussions with policymakers in the Trump administration.

Why Apple Wants CXMT Chips

Apple's move is primarily driven by the ongoing global memory chip shortage.

Earlier, Apple Chief Executive Officer Tim Cook warned that the company could no longer shield itself from rising chip prices. Shortly afterward, Apple significantly increased the prices of several products.

The M5 MacBook Pro has reportedly become $300 more expensive, while the entry-level MacBook Neo has seen a $100 price increase. Prices across the iPad Pro lineup have also risen by as much as $200 within a single week.

At present, Apple sources memory chips mainly from Micron Technology, Samsung Electronics, and SK hynix. However, supply constraints have prompted the company to consider CXMT as a backup supplier.

Congressional Opposition Expected

According to the Financial Times report, even if the Trump administration grants Apple the requested approval, the move is expected to face strong resistance from members of the U.S. Congress.

John Moolenaar, chairman of the congressional committee responsible for investigating China's geopolitical and technological influence, criticized the proposal, saying, "Apple's decision to partner with a Chinese military company would be a grave and terrible mistake."

Industry analysts believe the issue could become highly controversial. While the Trump administration continues to enforce strict tariffs and technology restrictions on China, allowing America's most valuable company to use chips from a Chinese firm with alleged military ties could significantly reshape the geopolitical dynamics of the global semiconductor industry and intensify the ongoing chip war.

//DBTech/BMT/OR//