Bloomberg: Apple plans to purchase chips from CXMT and YMTC.

Bloomberg cited people familiar with the matter reporting that Apple Inc. is in talks to purchase chips from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) to mitigate the impact of the global memory chip shortage, and these components will only be used in devices sold in the Chinese market. Apple has sought support from Trump administration officials on this matter, but some officials have expressed opposition to allowing Apple to include these two Chinese companies in its supply chain.

The U.S. Department of Defense recently updated its list of military-linked companies, adding CXMT and YMTC, as the U.S. believes the two companies support the Chinese military.

Hoping to reduce the impact of the global memory shortage

The global memory chip shortage has already forced Apple to raise product prices. People familiar with the matter revealed that Apple is seeking to purchase memory chips from CXMT and YMTC for devices sold in China. Apple is still in negotiations with the two companies and has not yet reached a final agreement.

The people also said that Apple CEO Tim Cook has sought support from Trump administration officials, including U.S. Treasury Secretary Scott Bessent, hoping to mitigate the political impact that a potential deal with the two Chinese chip companies could trigger.

Although Apple does not need formal U.S. government approval to purchase chips from CXMT or YMTC, this move could provoke strong opposition from national security hawks in Washington amid the current escalation of U.S.-China tensions, especially over advanced technology issues. Some Trump administration officials have already expressed opposition to allowing Apple to include these two Chinese companies in its supply chain.

U.S. lawmakers advocating a tough stance on China have voiced opposition to Apple purchasing memory from Chinese companies, including House Foreign Affairs Committee Chairman Brian Mast.

Taiwan plans to follow the U.S. in tightening export controls on AI chips to China.