Trump Administration Tells Apple to Stay Away From Chinese Memory Chips

In a bid to address a global memory shortage and soaring component costs, the Trump administration has advised Apple to refrain from sourcing memory chips from China. US Commerce Secretary Howard Lutnick conveyed this stance directly to Apple, urging the company to explore alternative solutions. Apple has reportedly been testing chips from ChangXin Memory Technologies and Yangtze Memory Technologies, with the potential for use in iPhones sold in China.

This move comes amid a surge in memory demand for AI data centers, driving up prices and exacerbating shortages. Apple's Chief Operating Officer, Sabih Khan, acknowledged the need to consider all available options due to the scale of the shortage, but declined to confirm whether Apple was indeed testing Chinese memory. Meanwhile, US memory manufacturer Micron has opposed Apple's plans, warning that reliance on state-supported Chinese suppliers could harm domestic semiconductor manufacturing and impede efforts to boost production in the United States.

A bipartisan group of senators has also urged Apple to abandon plans to use memory from CXMT or YMTC, including in devices sold outside the US. Both companies are listed on the Pentagon's Section 1260H list of Chinese military companies, and YMTC has been on the US Commerce Department's Entity List since 2022. Apple faces a difficult supply decision, balancing the need to alleviate the memory shortage and keep device costs down with the goal of fortifying domestic semiconductor manufacturing and diminishing reliance on China.