Apple lobbies US government for approval to purchase memory chips from blacklisted Chinese CXMT, citing HBM price spikes.
As the ongoing component crisis worsens, even the largest technology companies face mounting pressure. Apple, in a historic first, raised prices on a fleet of its products, citing soaring memory and storage costs that it can no longer shield its customers from absorbing. According to the Financial Times, Apple is now lobbying the U.S. government to secure official clearance to purchase memory chips from China's CXMT at significantly lower costs.
CXMT is not outright banned by the White House, as it does not appear on the Defense Department's "Entity List," which prohibits Chinese companies entirely on national security grounds. Instead, it is listed in the 1260H list, which designates it as a Chinese military company—a classification that would cause major reputational damage to any American company conducting business with it.
Apple has reportedly been reaching out to allies in Washington to persuade the government to permit purchases of RAM from CXMT. Unlike Micron, Samsung, and SK Hynix, which together control 90 percent of the world's DRAM market, CXMT lacks incentive to chase AI buildouts and can therefore supply RAM at substantially lower prices without compromising performance.
Recent evidence suggests CXMT's growing presence in mainstream supply chains. Corsair Vengeance DDR5 memory sticks sourced from China were found to use CXMT modules underneath, signaling the company's entry into consumer markets. That 6,000 MT/s CL30 kit demonstrates CXMT's ability to produce modern memory at scale sufficient for major PC vendors; Dell and HP are also adopting Chinese-made RAM for region-bound systems. Late last year, CXMT demonstrated production-ready DDR5-8000 and LPDDR5X-10667 modules, showcasing its capabilities for cutting-edge DRAM manufacturing. If a buyer like Apple were to enter the picture, even just for the Chinese market, it would fundamentally shift industry dynamics.
However, such a precedent faces significant political headwinds. John Moolenaar, chairman of the House China committee, has warned that Apple partnering "with a Chinese military company would be a grave mistake," stating that America must not rely on foreign supply chains for something as critical as DRAM.
Apple faces acute pressure. The company lost $265 billion from its market capitalization the day it announced price increases on MacBooks and iPads. Tim Cook acknowledged the severity of the situation, stating he had never seen anything comparable in his 40-plus years in the industry. The company can no longer maintain margins on memory and storage upgrades against what one official described as a "hundred-year flood."
Critics and security experts have questioned the administration's approach. One former official remarked: "Trump can show the courage to keep American memory alive for our security and our competitiveness or pour it down the drain so Tim Cook can squeeze out a few more points of margin." Another security expert noted inconsistency in protecting critical rare earths and minerals while potentially conceding ground in the AI race—the very driver of the current component crisis.
The outcome remains uncertain, complicated by executive transitions. Tim Cook will hand over leadership to John Ternus in September—a logistics specialist departing at a potentially critical juncture. As the AI boom and component shortages persist, the company's navigation of these challenges will prove decisive for its future competitive position.