Apple is reportedly engaged in ongoing talks to purchase memory from two Chinese semiconductor companies, even though they are on the Trump administration’s blacklist. Bloomberg, reports that its sources tell it that while talks are going on between Apple and ChangXin Memory Technologies Co. (CXMT) and Yangtze Memory Technologies Co. (YMTC), no deal has been finalized yet.
Apple recently was forced to raise prices on several of its products, including Macs, iPads, and other devices, due to the skyrocketing price of RAM. Chipmakers have moved their manufacturing focus to chips for AI servers, leaving less supply for consumer devices. Demand is greatly outpacing supply, meaning memory manufacturers can charge much higher prices.
Both CXMT and YMTC are on the Defense Department’s 1260H list of Chinese companies that the U.S. suspects have ties to the People’s Liberation Army. YMTC is also on a U.S. Commerce Department blacklist that prevents U.S. companies from selling to companies on the list without an export license.
While Apple is not required to get U.S. approval before buying chips from the Chinese companies, doing so will help prevent political upset from the Trump administration. However, some Trump administration officials are said to be against allowing Apple purchase chips from CXMT and YMTC, so it’s not clear if approval will be given.
Apple is hoping to get approval on the deal, while also campaigning to keep CXMT off the Commerce Department’s Entity List, which would prevent it from using CXMT as a supplier.
Apple CEO Tim Cook recently spoke with Trump administration officials about using the chips sourced from the companies in devices meant for the Chinese market, which would free up chips from other suppliers for the U.S.