Apple is in talks to buy memory from Chinese semiconductor companies ChangXin Memory Technologies Co. (CXMT) and Yangtze Memory Technologies Co. (YMTC), reports Bloombergciting sources with knowledge of the talks. Discussions between Apple and chipmakers are ongoing and no deal has been finalized yet.
Financial Times previously reported that Apple was considering working with CXMT and YMTC to obtain RAM more cheaply, and several South Korean sites also reported the possibility. Apple recently raised prices on Macs, iPads and other devices, and consumers are now forced to pay more for many Apple products.
Apple has raised prices due to a continuing global memory shortage that has driven up costs. Chipmakers are focusing on AI server chips, leaving less supply for consumer devices. As demand exceeds supply, memory manufacturers can charge higher prices.
Both CXMT and YMTC are on the Defense Department’s 1260H list of Chinese companies that U.S. suspects have ties to the People’s Liberation Army. YMTC is also on a U.S. Commerce Department blacklist that prevents U.S. companies from selling to companies on the list without an export license.
Apple is not required to get U.S. approval before buying chips from Chinese companies, but working with the Trump administration would avoid political upheaval. Apple hopes to get the green light for the deal and wants to keep CXMT off the Commerce Department’s entity list, which would prevent it from using CXMT as a supplier.
Bloomberg says Apple CEO Tim Cook has spoken with Trump administration officials, including Treasury Secretary Scott Bessent. Apple has proposed using the companies’ chips in devices for the Chinese market, freeing up chips from other suppliers for the United States.
Some Trump administration officials are reportedly opposed to Apple sourcing chips from CXMT and YMTC. It is therefore unclear whether the negotiations will result in an agreement. Apple previously attempted to source memory from YMTC in 2022, but talks ended after a backlash from Congress.
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