It has been claimed that Apple is trying to get permission from the Trump administration to work with Chinese memory manufacturer ChangXin Memory Technologies (CXMT), which is on the US blacklist. According to the Financial Times, Apple is making attempts to obtain the necessary approval through its various contacts in the US Department of Commerce and Washington in order to diversify its memory chip supply. Although there is no direct ban officially preventing it from doing business with CXMT, it is stated that Apple takes political and legal risks into consideration since the company in question is on the 1260H list prepared by the US Department of Defense.
According to the information provided by the Financial Times, Apple made its first contact with the US Department of Commerce about a month ago. In addition, it is stated that the company is trying to operate the necessary permit mechanism by including its relations in Washington into the process. The 1260H list includes companies that the US Department of Defense considers to be linked to the Chinese People’s Liberation Army. It is not possible for the US Department of Defense to contract directly with the companies on this list or to use products and services through third parties. However, there is no absolute trade ban for the private sector.
Memory chip shortage accelerates Apple’s quest to increase supply options
The news states that one of the main reasons why Apple wants to work with CXMT is the tightness in global memory chip supply. The recent increase in the cost of memory components directly affects the production plans and product prices of technology manufacturers. Apple CEO Tim Cook also stated in his previous evaluations that the company could not continue on its way without being completely affected by the contraction in the memory market.
Following these developments, Apple updated the prices of many hardware products. While the company’s MacBook Pro model with an M5 processor with 1 TB of storage has increased by $ 300, the price of the entry-level MacBook Neo has also increased by $ 100. In addition, a price increase of approximately $200 has started to be applied to the iPad Pro series. Rising component costs and supply pressure are causing Apple to further evaluate the possibility of working with alternative memory manufacturers.
Apple is currently working with leading manufacturers in the industry, such as US-based Micron and South Korean Samsung and SK Hynix, to supply memory chips. Despite this, CXMT’s increase in DRAM production capacity and expansion of its production infrastructure in China in recent years makes the company stand out among alternative suppliers. However, the tension between the USA and China in the field of technology can lead to such commercial relations having not only economic but also political consequences.
Speaking to the Financial Times, John Moolenaar, a member of the US House of Representatives and the leader of congressional studies examining China’s geopolitical influence, reacted harshly to the possible cooperation. Moolenaar stated that it would be a serious mistake for Apple to establish a partnership with a company that is considered to be linked to the Chinese army. Therefore, if the Trump administration approaches Apple’s request positively, objections are expected from Congress.
The decision to be made in the coming period will not only affect Apple’s supply chain, but also how the US’s technology policies towards China will be shaped. From Apple’s perspective, access to different memory suppliers can provide advantages in terms of production continuity and cost control. On the other hand, national security debates and political pressures are among the most important factors that may make it difficult to implement such a procurement plan.