Apple seeks to buy memory chips from blacklisted Chinese company

Apple seeks to buy memory chips from blacklisted Chinese company

Apple is lobbying the Trump administration for clearance to purchase memory chips from ChangXin Memory Technologies (CXMT), a Chinese firm currently on a Pentagon blacklist, according to reports from the Financial Times. The iPhone maker is seeking to ease financial pressure resulting from a surge in memory chip prices.

Apple first approached the Commerce Department more than a month ago and has since expanded its efforts to engage other Washington allies and administration officials. The move follows a period of severe memory shortages, which Apple warned during an April earnings call would worsen before improving.

The company recently felt the impact of these costs. On June 25, Apple raised prices for its Mac and iPad lineups, as well as home devices, with increases ranging from $100 to $500. The MacBook Air 13-inch rose from $1,099 to $1,299, the MacBook Pro 16-inch climbed from $2,499 to $2,999, and the Vision Pro increased by $500. Apple stated it could no longer shield customers from costs driven by the AI industry's data center buildout.

The financial fallout was immediate. Apple shares fell more than 6 percent on the day of the price increases, the worst single-day drop since April 2025. According to Counterpoint Research, memory prices have quadrupled over the past three quarters. This is attributed to Micron, SK Hynix, and Samsung redirecting wafer capacity away from consumer DRAM toward high-bandwidth memory for AI data centers.

CXMT, China's top memory chipmaker, has emerged as a potential solution. The company has supplied DDR5 memory to Western brands such as Corsair at prices that undercut the three dominant manufacturers. However, CXMT's status makes it a politically sensitive partner.

The company is listed on the Pentagon's 1260H list, which identifies Chinese military companies with alleged ties to the People’s Liberation Army that undermine U.S. National security. While the 1260H designation restricts Defense Department contracting and carries reputational risk, it does not block private commercial transactions. Apple is not currently barred from buying chips from CXMT or another Chinese firm, YMTC.

The core of Apple's lobbying effort is to secure a guarantee that CXMT will not be added to the Commerce Department's Entity List. Unlike the 1260H list, the Entity List requires U.S. Companies to obtain licenses to ship goods, software, and technology to the listed firm—licenses that are likely to be denied. Last year, an interagency committee approved CXMT for addition to this list.

The 1260H list has seen recent volatility. In February, the Pentagon briefly removed CXMT and YMTC before reversing the decision following criticism from congressional China hawks. In a June update, the list was expanded to 188 entities, including Baidu, Alibaba, and BYD.

Apple CEO Tim Cook previously hinted at this strategy during an interview with the Wall Street Journal a week before the price hikes, stating that Apple had no choice but to raise prices. When asked if restrictions on working with Chinese firms should be loosened, Cook said: I think everything needs to be on the table, adding, I think we should look at all supply.

CXMT has grown rapidly with government support as Beijing pursues semiconductor self-sufficiency and has received approval to pursue a listing on the Shanghai stock market. If approved, Apple's shift would diversify its supply chain away from the current dominance of Micron, SK Hynix, and Samsung.

The White House, Apple, and CXMT did not respond to requests for comment. It remains uncertain if the administration will grant the request, as the proposal faces scrutiny over commercial relationships with firms viewed as strategically important to China.