Commerce Secretary says US opposes Apple buying Chinese memory chips

US Commerce Secretary Howard Lutnick has expressed opposition to Apple's potential purchase of memory chips from Chinese companies CXMT and YMTC, according to The Wall Street Journal. The move comes as Apple seeks alternatives to address the ongoing global supply shortage. Both companies are on the US Commerce Department’s Entity List, and the Pentagon has designated them as Chinese military firms due to alleged ties to China’s military.

While Apple typically customizes many of its iPhone components, memory customization is reportedly limited, suggesting the possibility of using off-the-shelf Chinese memory chips. However, customized chips would likely require sharing product information with CXMT or YMTC, which is restricted under US export-control rules and necessitates a license from the Commerce Department.

Apple has shown intent to diversify its memory supply options, with CEO Tim Cook advocating for a broader evaluation of supply sources. Reports suggest Apple had already discussed the issue with the Trump administration, and Cook mentioned Apple's evaluation of various options during recent earnings calls. The Trump administration has been vocal in its disapproval of Apple sourcing memory chips from China, with Lutnick stating in an interview that the administration is "not in favor of that."

Apple's recent construction of an Advanced Manufacturing Center in Houston, Texas, as part of its $600 billion investment in domestic manufacturing, may further distance the company from any potential deal with Chinese memory chip suppliers.