After Apple started lobbying the US government for approval to use memory chips from CXMT, The Financial Times now reports that the company is actively testing the components for devices sold in China. Here are the details.
Apple’s CXMT push moves ahead
A few weeks ago, Tim Cook told The Wall Street Journal that Apple’s price hikes were unavoidable due to the market-wide memory chip crunch and, in so many words, said that the US should reconsider its decision to restrict access to certain Chinese companies that could help ease supply constraints.
From the WSJ story:
As it turns out, Apple had already been seeking clearance from the Trump administration to purchase chips from CXMT, “a Chinese company that the Pentagon has put on a blacklist because of alleged connections to the People’s Liberation Army,” as The Financial Times reported.
A few days after that, the FT reported that Apple was in negotiations to purchase chips from YMTC, in addition to CXMT. Now, the FT reports that things are even further along:
Today’s news continues a years-long effort by Apple to tap Chinese memory suppliers for devices sold in China.
In 2022, the FT reported that Apple was evaluating NAND chips from YMTC for iPhones sold in China. At the time, the idea drew warnings from US lawmakers, while a bipartisan group of senators also urged the Biden administration to block YMTC over alleged export-control violations.
This time, however, the context is different. With soaring memory prices and Apple already raising prices on some products, the company could make a more compelling case for approval by limiting CXMT-made chips to devices sold in China.
Even so, the overall concern remains the same: US lawmakers have long argued that using Chinese suppliers such as YMTC or CXMT could strengthen state-backed competitors accused of benefiting from Beijing’s subsidies, further undermining US competition.
For The Financial Times‘ full report, follow this link.
