Apple Seeks Trump Administration Approval to Buy Memory Chips from Blacklisted Chinese Firm

Apple has requested permission from the Trump administration to purchase memory chips from CXMT, a Chinese company blacklisted by the Pentagon due to its ties to the Chinese military, according to the Financial Times. Last week, Apple raised prices by hundreds of dollars on key products including various MacBook and iPad models, citing a surge in memory chip costs driven by unprecedented demand from AI data centers. Although being on the Pentagon's blacklist does not legally prevent Apple from buying from CXMT, the company risks retaliation from the Trump administration, known for its strict stance on Chinese firms. CXMT is also under consideration for import restrictions by the Commerce Department, which could bar American companies from sourcing from it.

In response, Apple is engaging with the White House, the Commerce Department, and Washington allies to secure approval for the deal and assurances against import restrictions. Sources indicate ongoing talks but no guarantee that the administration will grant such exemptions. Securing chips from CXMT would significantly alleviate Apple's memory chip shortage, potentially halting or reversing recent price hikes. However, these efforts face strong opposition in Washington. Republican Representative John Moolenar, chair of the House China Committee, warned that cooperating with a Chinese military-linked firm would be a grave mistake, increasing U.S. tech and economic dependence on China amid efforts to build secure supply chains with allies.

A government official cautioned that approving Apple's request could risk losing another critical industry to China, urging President Trump to protect American memory chip production for national security and competitiveness rather than prioritize corporate profit margins.