Apple reportedly looks to blacklisted Chinese memory chips as RAM prices climb

Apple is reportedly trying to get a clearance from the Trump administration to buy memory from ChangXin Memory Technologies (CXMT) to get some relief from soaring DRAM prices.

As per a report by the Financial Times, Apple approached the Commerce Department more than a month ago and also spoke to other officials and allies in Washington. For starters, CXMT is a company that's already been placed on the Pentagon's list of Chinese military companies.

The Chinese company is the country's top DRAM maker. For Apple, the timing is certainly awkward but not surprising. Tim Cook had recently warned that Apple would have to raise prices because AI companies are buying up large amounts of memory for data centers, and just like that, Apple raised MacBook and iPad prices.

Micron also recently revealed that customers have committed billions of dollars to secure memory supply years in advance, which shows us how aggressive securing infrastructure has become. This gives suppliers such as Samsung, SK Hynix, and Micron more leverage, while pushing hardware makers to look for alternatives.

CXMT is one of those alternatives, but not the simplest one. Apple has spent many years trying to diversify parts of its supply chain away from China, especially for final assembly, while still depending heavily on Chinese manufacturing and suppliers. Even domestic brands from China are moving towards CXMT and YMTC instead of relying on Samsung, Micron, and SK Hynix. For Apple, though, it would invite more scrutiny than local Chinese companies.

For now, this is more like a lobbying effort rather than a confirmed supply deal. There's no official statement from either of the parties. What is clearer, though, is the pressure behind such a request. AI demand has certainly made hardware a bottleneck, and companies are trying everything they can to bring things back to normal, even if that means making politically sensitive choices.

Source: Financial Times