Apple is reportedly considering sourcing memory chips from Chinese manufacturers as it looks to navigate a global memory shortage that has driven up component costs and forced the company to raise prices across several of its products.
According to Bloomberg, the Cupertino-based company is in talks with ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co (YMTC) to supply memory chips for Apple devices sold in China. That being said, discussions are said to be still underway with no agreement reached for now.
The move would be fairly controversial to say the least, as both CXMT and YMTC are on the US government’s blacklist of Chinese companies alleged to support China’s military. While Apple does not need formal approval from the US government to buy chips from either company, doing so could invite criticism from lawmakers and officials who have pushed for stricter controls on Chinese tech companies.
Apple CEO Tim Cook has also allegedly appealed to senior Trump administration officials like Treasury Secretary Scott Bessent in an effort to minimise any political fallout should the deal go ahead.
Cupertino hasn’t managed to escape the current global memory shortage, caused by the AI boom. Apple currently sources memory chips from Samsung, SK Hynix and Micron, but they’ve since shifted focus on making chips for AI data centers. If the deal goes through, CXMT and YMTC would become additional suppliers, helping Apple diversify its supply chain and secure more components.
It was just a week ago of course when Apple increased prices across its Mac, iPad and Pro and home device lineup, citing unusually sharp increases in memory costs caused by the AI boom.
In fact, this wouldn’t even be the first time Apple has tried working with Chinese memory makers. In 2022, the company reportedly planned to use the YMTC’s memory chips before abandoning the idea following political pressure in Washington. This time though, Apple may be given some leeway by limiting Chinese memory chips only for devices sold within China.
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