Bipartisan US senators have warned Apple not to source memory chips from Chinese tech firms Changxin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC), which have been added to the US blacklist, to avoid the risk of depending on competitors sanctioned by the US for critical components.
The group of lawmakers, led by Indiana Republican Senator Jim Banks and New York Democratic Senator Chuck Schumer, sent a letter to Apple CEO Tim Cook stating that Apple should not use memory chips from CXMT and YMTC in its devices, even if those products are sold exclusively to the Chinese market.
The lawmakers emphasized that CXMT and YMTC have been included in the latest US Department of Defense’s updated list of Chinese military-linked companies.
The lawmakers wrote in the letter: “This shortsighted approach would be a mistake and will make the world's most valuable consumer electronics company increasingly reliant on companies that have been officially designated by the US government as Chinese military enterprises for critical supply.”
Sources revealed that Apple is seeking to source memory chips from CXMT and YMTC for devices sold in China. Apple is still in discussions with the two companies and no final agreement has been reached yet.
According to those familiar with the matter, Cook has sought support from Trump administration officials on the issue, including US Treasury Secretary Janet Yellen, in hopes of mitigating the political impact that a potential deal with the two Chinese chip companies might trigger.
Global memory supply is tight, pushing memory prices higher, and unprecedented demand from AI processor manufacturers like NVIDIA has worsened the supply crunch. In June this year, Apple raised the prices of all Mac, iPad, home devices, and Vision Pro products, attributing the price hikes to the memory chip shortage.
The lawmakers emphasized that CXMT and YMTC have been included in the latest US Department of Defense’s updated list of Chinese military-linked companies.
The lawmakers wrote in the letter: “This shortsighted approach would be a mistake and will make the world's most valuable consumer electronics company increasingly reliant on companies that have been officially designated by the US government as Chinese military enterprises for critical supply.”
Sources revealed that Apple is seeking to source memory chips from CXMT and YMTC for devices sold in China. Apple is still in discussions with the two companies and no final agreement has been reached yet.
According to those familiar with the matter, Cook has sought support from Trump administration officials on the issue, including US Treasury Secretary Janet Yellen, in hopes of mitigating the political impact that a potential deal with the two Chinese chip companies might trigger.
Global memory supply is tight, pushing memory prices higher, and unprecedented demand from AI processor manufacturers like NVIDIA has worsened the supply crunch. In June this year, Apple raised the prices of all Mac, iPad, home devices, and Vision Pro products, attributing the price hikes to the memory chip shortage.