Apple is in talks with Chinese chipmakers CXMT and YMTC, both flagged on a Pentagon list for alleged military ties to Beijing, to source memory chips for China-market devices amid a global memory shortage
CEO Tim Cook has appealed to Trump administration officials, including Treasury Secretary Scott Bessent, to help manage political fallout
The shortage, driven by AI-related demand, has already pushed Apple to raise prices across Macs, iPads and other devices, with Samsung, SK Hynix and Micron all ramping up production to keep pace
Apple Inc. is reportedly negotiating with two Chinese semiconductor manufacturers to purchase memory chips, as the company looks to cushion the impact of a global memory shortage that has driven up prices across its product line.
Bloomberg reported that Apple is looking to source memory components from ChangXin Memory Technologies Inc. and Yangtze Memory Technologies Co. for use in devices sold in China.
4 July 2026
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The discussions between Apple and the two companies are ongoing, and nothing has been finalised, the report said. Notably, both companies feature on an updated Pentagon list of Chinese entities believed to support Beijing's military.
Tim Cook's Appeal to Washington
Apple's effort has included appeals from CEO Tim Cook to Trump administration officials, including Treasury Secretary Scott Bessent, aimed at softening potential political fallout from any deal with the Chinese chipmakers.
The report noted that although Apple is not required to obtain formal U.S. authorisation to buy chips from CXMT or YMTC, such purchases could trigger strong backlash from national security advocates in Washington amid escalating US-China friction over advanced technology. Certain officials from the Trump administration have opposed allowing Apple flexibility to incorporate these Chinese companies into its supply chain.
Global Memory Squeeze
The decision comes as Apple and other consumer electronics manufacturers confront an unprecedented shortage of memory chips, fuelled by soaring demand linked to the global AI boom. Advanced processors used in data centres need large amounts of memory, pushing chipmakers to shift production toward this rapidly expanding, higher-margin segment.
CXMT and YMTC would increase Apple’s memory supplier base to five. At present, the company depends on South Korea’s Samsung Electronics Co. and SK Hynix Inc., as well as US-based Micron Technology Inc., to provide memory for its mobile and computing devices.
The report further noted that current suppliers have found it difficult to match AI-driven demand: Samsung and SK Hynix each committed more than $880 billion this week to build new chip fabrication facilities, while Micron has announced its own plans to expand manufacturing in the United States.
Price Hikes Across Apple's Lineup
Last week, Apple increased prices for its Mac, iPad, home device, and Vision Pro product lines, citing a shortage of memory components.
A company spokesperson linked the hikes to the rapid growth of AI, noting that Apple had "never seen a component’s cost rise this sharply, this fast."
Microsoft Corp. implemented a similar move, announcing its third price increase on Xbox consoles in 13 months, likewise blaming the pressure on memory supplies.
Washington Pushback Expected
According to the report, Apple's approach is likely to face resistance from within the Trump administration. Officials decided earlier this year to keep both CXMT and YMTC on the 1260H list, a congressionally mandated Defence Department roster of companies alleged to support the People's Liberation Army. YMTC was added to the Pentagon list in January 2024, and CXMT in 2025.
US legislators advocating a harder-line approach toward China are also expressing resistance. House Foreign Affairs Committee Chair Brian Mast asserts that CXMT and YMTC are Chinese military-linked firms supporting Beijing’s military modernisation and artificial intelligence ambitions, and argues that permitting the deal to move forward would weaken efforts to safeguard US supply chains and to "win the AI arms race."
Broader Restrictions on YMTC
YMTC also faces separate curbs via its 2022 inclusion on a US Commerce Department blacklist, which bars American suppliers from selling it technology without an export licence.
While a 1260H designation carries few immediate legal consequences, Washington increasingly uses the list to restrict companies' ability to contract with the US military or receive research funding, and it is widely viewed by investors as a warning sign that can precede tougher trade measures.
Bloomberg reported that Apple's 2022 attempt to source memory from YMTC was derailed by opposition in Washington. This time, by potentially limiting Chinese-made chips to devices sold within China, where Apple already offers market-specific models, the company is seeking to avoid a similar backlash.
