Apple seeks US clearance to buy chips from blacklisted Chinese firm

Apple is seeking approval from the Trump administration to purchase memory chips from a Chinese company added to a Pentagon blacklist.

The company wants to buy from CXMT, which the Defense Department recently placed on its 1260H list of firms linked to the Chinese People's Liberation Army.

Apple first contacted the Commerce Department about the matter a month ago and has also reached out to officials in Washington. While not barred from the purchases, the company risks repercussions without White House approval.

The move aims to ease a memory chip shortage that prompted Apple to raise prices on several products, including a $300 increase for the 1TB M5 MacBook Pro. Apple currently sources such chips from Micron, Samsung and SK Hynix.

Congress is expected to object. Representative John Moolenaar said, "Apple choosing to partner with a Chinese military company would be a grave mistake."

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Nvidia CEO Jensen Huang shaking hands with SK Group Chairman Chey Tae-won in a Taipei conference room.
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Nvidia CEO Jensen Huang met SK Group Chairman Chey Tae-won in Taipei to discuss AI memory cooperation. The meeting took place on Monday.

Apple is exploring semiconductor suppliers beyond its primary partner, Taiwan Semiconductor Manufacturing Company (TSMC), due to global chip shortages. The company has held discussions with Samsung and Intel, including visits to a Samsung plant in Texas. No major orders have been placed yet.

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Apple CEO Tim Cook stated that high memory costs will significantly impact the company's business in coming quarters. He highlighted supply constraints during the latest earnings call despite strong revenue growth. The issue stems from skyrocketing RAM prices driven by AI data center demand.

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