Full Breakdown
Apple Seeks US Clearance to Source Memory Chips from Blacklisted Chinese Suppliers
7/2/2026, 2:10:31 AM
Apple Seeks US Clearance to Source Memory Chips from Blacklisted Chinese Suppliers
Apple is negotiating with ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) to buy DRAM and NAND for devices sold in China. Both firms appear on the U.S. Defense Department’s 1260H blacklist for alleged ties to the People’s Liberation Army. Apple has sought permission from the Trump administration and the Commerce Department, citing a global memory shortage that has already forced price hikes.
Background & Context
Memory makers have shifted capacity to high-bandwidth chips for AI data centers, leaving consumer-grade DRAM and NAND scarce. Prices for these components have quadrupled in recent quarters, prompting Apple to raise prices on Macs, iPads, Apple TV, HomePod, HomePod mini and Vision Pro by $30-$1,300 in June 2026. iPhone prices remain unchanged, though new September models are expected to cost more. The shortage has forced Apple to consider alternative suppliers.
Why It Matters
Securing Chinese memory could ease Apple’s cost pressure and limit further price hikes, but the deal tests U.S. national-security policy and may affect the company’s September pricing strategy and broader U.S.–China tech relations. For CXMT, a contract would provide a high-profile customer ahead of its planned IPO.
Official Statements & Responses
Tim Cook described the shortage as “unlike anything he had experienced in over 40 years” and likened it to a “hundred-year flood.” He said “everything needs to be on the table” and that Apple is reviewing all supply options. Apple officials have told the Commerce Department they seek assurance the deals will not trigger penalties and have asked to keep CXMT off the Entity List.
Criticism & Opposition
Some Trump officials have reportedly opposed clearance, citing the firms’ alleged military links. Congressional backlash in 2022 halted a prior Apple-YMTC effort, and critics warn that buying from blacklisted suppliers could undermine the blacklist’s purpose.
Conflicting Reports & Gaps
Bloomberg notes Apple is not legally required to obtain U.S. approval before buying from CXMT and YMTC, while other sources stress the company’s proactive lobbying to avoid political fallout. No agreement has been reached, and CXMT’s ability to meet Apple’s volume needs remains unclear.
Verbatim Quotes
- “I think everything needs to be on the table. I think we should look at all supply.” — Tim Cook, Apple CEO
- “MacDailyNews Take: You can’t blame Apple for trying to get assurances that any potential deals for Chinese memory won’t get scuttled.” — MacDailyNews editorial
What’s Next
Apple’s September launch will show whether any cost-saving measures have been applied. A decision from the Commerce Department on CXMT and YMTC clearance is expected in the coming weeks, shaping Apple’s pricing and its exposure to U.S.–China trade tensions.
