Apple Lobbies Trump Administration to Approve Chinese Memory Chip Purchases

Apple seeks approval to use Chinese memory chips

Lobbying Trump administration

U.S. lawmakers say move would deepen reliance on China

Smaller manufacturers say they can't secure memory chips

A memory-chip shortage driven by the artificial intelligence boom is spreading financial strain across the electronics industry, hitting both global giants such as Apple and smaller manufacturers. Apple is actively exploring purchases of Chinese memory chips that have been placed on a U.S. blacklist after struggling with tight supply and soaring prices, according to a report. Smaller electronics makers, lacking Apple's financial resources and supply-chain reach, are facing production disruptions and sharply rising costs that threaten their survival.

The Financial Times reported on June 26 that Apple has been lobbying the Trump administration, including the U.S. Commerce Department, to approve purchases of Chinese-made memory chips.

Seeking support in Washington

Apple first contacted the Commerce Department more than a month ago and has since sought support from other parts of the administration and allies in Washington, the FT reported.

The Chinese chipmaker drawing Apple's interest is ChangXin Memory Technologies, or CXMT. Apple is not currently prohibited by law from buying products from CXMT or from another Chinese memory maker, Yangtze Memory Technologies, or YMTC. But the U.S. Defense Department has classified both companies as "Chinese military companies" over alleged ties to China's military. The list targets Chinese companies viewed as posing risks to U.S. national security. It carries more reputational damage than direct legal penalties, effectively making it a blacklist.

Apple's unusual push to add a Chinese supplier reflects the surge in memory prices. The company raised prices for MacBooks and iPads on June 25, citing "memory prices that have risen to unsustainable levels." Like other consumer-electronics makers, Apple is passing higher costs on to customers.

The FT said Apple believes adding CXMT as a new memory supplier would reduce its reliance on existing vendors and strengthen its bargaining power on prices.

It remains unclear whether Apple will ultimately be able to buy Chinese semiconductors. President Donald Trump allowed Nvidia to sell its H200 high-performance AI chips to China last year, but the decision also met strong opposition within the administration, the FT said.

Apple's efforts have also drawn criticism in Congress. Representative John Moolenaar, the Republican chairman of the House Select Committee on China, told the FT that helping the Chinese Communist Party gain control of critical supply chains would leave the U.S. technology industry and economy more dependent on China rather than allied countries.

Smaller companies face deeper pain

Smaller electronics makers, with weaker supply networks and less leverage in price negotiations, are under even greater pressure. CNBC reported on June 27 that the AI boom has sent DRAM prices soaring and tightened supply, leaving smaller electronics companies under severe financial strain.

Mono Technologies, a startup founded in 2024, drew attention earlier this year after shipping about 1,000 units of a $600 router development kit. But surging memory prices have cast doubt over its next production run. Co-founder Tomasz Zaman said the company has already collected $100 deposits from 1,300 customers waiting for the next batch, but has not decided whether it can move forward with production.

The reason is a sharp jump in the price of Micron's 8GB DRAM. The chip cost $35 when the product was developed, but has since climbed to $300, upending the company's cost structure.

Action-camera maker GoPro also warned investors that the business faced serious risks to its viability after memory prices surged 80% to 115% by the end of the first quarter this year. The company said memory suppliers had notified it of plans to reduce output of the memory used in its products. It also cut its sales outlook.

Market researcher IDC described the current situation as an "absolute survival crisis" for smaller manufacturers. Nabila Popal, an analyst at IDC, said smaller Android smartphone makers selling devices for less than $100, as well as regional electronics companies, may not be able to secure memory at all because suppliers are focused only on orders from large customers.

Park Shin-young, New York correspondent, Hankyung.com, nyusos@hankyung.com