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Apple and Micron launch a China chip lobbying war, leaving Trump in a difficult bind
The plan has been fiercely resisted by Micron, the only major large-scale memory manufacturer in the U.S. Micron executives warned the government that even if products are sold only overseas, allowing purchases of China’s memory chips would disrupt the U.S. domestic memory industry and could repeat the past scenario in which U.S. manufacturing was driven into decline as it was squeezed by low-priced overseas products. Micron proposed relying on its own $250B U.S. capacity expansion plan to address the supply gap, and it opposed loosening restrictions on chip procurement from China.
CXMT and Yangtze Memory had already been added by the U.S. to a list of entities involved in military activities. The two U.S. companies’ demands are completely at odds, leaving the Trump administration facing a policy dilemma between balancing consumer market costs and protecting the domestic semiconductor industry. At present, related approvals have not reached any clear conclusion. This round of storage chip price increases is expected to last until 2027. Apple’s multiple devices have already seen significant price hikes, and cost pressure continues to rise.