Apple is in talks to buy memory from Chinese semiconductor companies ChangXin Memory Technologies Co. (CXMT) and Yangtze Memory Technologies Co. (YMTC), reports Bloomberg, citing sources with knowledge of the talks. Discussions between Apple and the chipmakers are ongoing, and no deal has been finalized yet.
Financial Times previously reported Apple was looking into working with CXMT and YMTC to get RAM at a lower cost, and there were also several reports from South Korean sites on the possibility. Apple recently raised the prices of Macs, iPads, and other devices, and consumers are now forced to pay more for many Apple products.
Apple increased its prices because of an ongoing global memory shortage that has driven costs up. Chipmakers are focusing on chips for AI servers, leaving less supply for consumer devices. With demand outpacing supply, memory manufacturers can charge 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.
Apple is not required to get U.S. approval before buying chips from the Chinese companies, but working with the Trump administration would prevent political upset. Apple is hoping to get a green light on the deal, and it wants to keep CXMT off the Commerce Department's Entity List, which would prevent it from using CXMT as a supplier.
Bloomberg says Apple CEO Tim Cook has spoken with Trump administration officials, including Treasury Secretary Scott Bessent. Apple has proposed using the chips sourced from the companies in devices meant for the Chinese market, freeing up chips from other suppliers for the U.S.
Some Trump administration officials are reportedly against letting Apple source chips from CXMT and YMTC, so it's not clear if the talks will lead to an agreement. Apple previously tried to source memory from YMTC in 2022, but the talks ended after congressional backlash.
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