After Apple started lobbying the US government for approval to use memory chips from CXMT, The Financial Times now reports that the company is actively testing the components for devices sold in China. Here are the details.
Apple’s CXMT push moves ahead
A few weeks ago, Tim Cook told The Wall Street Journal that Apple’s price hikes were unavoidable due to the market-wide memory chip crunch and, in so many words, said that the US should reconsider its decision to restrict access to certain Chinese companies that could help ease supply constraints.
From the WSJ story:
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.”
As it turns out, Apple had already been seeking clearance from the Trump administration to purchase chips from CXMT, “a Chinese company that the Pentagon has put on a blacklist because of alleged connections to the People’s Liberation Army,” as The Financial Times reported.
A few days after that, the FT reported that Apple was in negotiations to purchase chips from YMTC, in addition to CXMT. Now, the FT reports that things are even further along:
“Apple has begun testing the company’s DRam chips for devices sold in China, according to two people familiar with the matter, as the iPhone maker leads a lobbying effort among US tech companies to get the US government to allow broader use of the company’s products.”
Today’s news continues a years-long effort by Apple to tap Chinese memory suppliers for devices sold in China.
In 2022, the FT reported that Apple was evaluating NAND chips from YMTC for iPhones sold in China. At the time, the idea drew warnings from US lawmakers, while a bipartisan group of senators also urged the Biden administration to block YMTC over alleged export-control violations.
This time, however, the context is different. With soaring memory prices and Apple already raising prices on some products, the company could make a more compelling case for approval by limiting CXMT-made chips to devices sold in China.
Even so, the overall concern remains the same: US lawmakers have long argued that using Chinese suppliers such as YMTC or CXMT could strengthen state-backed competitors accused of benefiting from Beijing’s subsidies, further undermining US competition.
For The Financial Times‘ full report, follow this link.
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