Apple seeks US approval to buy RAM from Chinese supplier CXMT
The request comes as memory costs rise, but lawmakers warn that buying from CXMT would deepen reliance on China.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Apple has asked the Trump administration for clearance to buy RAM chips from CXMT, a Chinese memory supplier the Pentagon has blacklisted over alleged ties to the People’s Liberation Army, the Financial Times reported. The move matters because Apple is trying to ease pressure on its supply chain after sharp increases in RAM and storage costs contributed to price increases across nearly all of its products this week, according to The Verge.
Apple is not legally barred from purchasing CXMT chips, The Verge reported. Even so, buying from a company identified by the Pentagon as connected to China’s military would expose Apple to political and reputational risk in Washington.
The request puts the White House in a sensitive position. The Trump administration would have to decide whether to give Apple political cover to use a supplier already drawing national security scrutiny, while also weighing broader trade talks with China.
Supplier scrutiny
CXMT has faced possible additional restrictions from the Commerce Department, according to The Verge. The company appeared on a proposed list of additions to the department’s Entity List, a trade restriction tool, but the move was put on hold while the White House was involved in negotiations with China.
If CXMT were added to the Entity List, the company could face export controls tied to U.S. security concerns. The Verge reported that CXMT could still become a target of those controls if officials conclude the company is undermining U.S. security interests.
Apple’s request follows a period of mounting pressure in the memory market. The Verge reported that rising RAM and storage costs have already affected Apple’s pricing, making alternative supply options more attractive for the company.
Political risk for Apple
Apple Chief Executive Tim Cook has spent time cultivating ties with the Trump administration, The Verge reported. That included presenting President Donald Trump with decorative statues and attending a screening of the film Melania, directed by Brett Ratner.
Any approval for Apple to buy from CXMT would likely draw objections from China hawks in Congress. Rep. John Moolenaar, the Republican chair of the House China committee, criticized the prospect in comments to the Financial Times.
“Apple choosing to partner with a Chinese military company would be a grave mistake,” Moolenaar told the Financial Times. He said helping the Chinese Communist Party “dominate critical supply chains” would make the U.S. tech industry and economy more dependent on China at a time when the country should be building secure technology supply chains with allies.
The administration’s decision remains unclear, according to The Verge. Apple’s request places the company’s supply needs against Washington’s push to reduce dependence on Chinese technology firms in sensitive parts of the electronics supply chain.
This story draws on original reporting from The Verge.