Apple asks Trump admin to approve Chinese RAM after product price increases

The Financial Times reports that Apple is seeking clearance from the Trump administration to purchase memory chips from a blacklisted Chinese company. The move would help it meet demand for product manufacturing during the ongoing global memory supply shortage.

Demetri Sevastopulo and Michael Acton, reporting for The Financial Times:

Apple is lobbying the Trump administration for clearance to buy memory chips from CXMT, a Chinese company that the Pentagon has put on a blacklist because of alleged connections to the People’s Liberation Army, according to six people familiar with the matter.

The iPhone maker has waged a lobbying campaign to get the blessing from the White House to help ease the financial pressure on the company from the rise in memory chip prices.

Per the report, Apple contacted the commerce department a month ago before recently expanding its lobbying efforts to gain clearance.

The report explains that while Apple can technically purchase memory chips from Chinese vendors, Pentagon restrictions complicate the matter.

Apple is not barred from buying chips from CXMT, or YMTC, another Chinese memory chipmaker. But the Pentagon has put both companies on its Chinese Military Company blacklist. The so-called 1260H list contains dozens of Chinese groups with alleged ties to the PLA that undermine US national security.

Meanwhile, Apple dramatically increased the cost of several products, including Macs and iPads, on Thursday, citing increased memory and storage chip prices.

Apple CEO Tim Cook told the Wall Street Journal a week earlier that it had no choice but to raise prices. In the piece, Cook hinted that Apple was interested in buying memory chips from Chinese firms, if granted approval.

China has national champion companies in memory and storage, but due to national-security rules, American companies would likely require licenses to work with them. When asked if those restrictions should be loosened, Cook said: “I think everything needs to be on the table,” adding, “I think we should look at all supply.”

Now it seems Apple is pushing harder for this solution after last week’s interview and this week’s price increases didn’t get results. You can read the latest report in full at The Financial Times.