The White House is pressing Apple (NASDAQ: AAPL) not to source memory chips from Chinese manufacturers as a global shortage pushes component prices higher and forces technology companies to reconsider their supply chains.
Commerce Secretary Howard Lutnick said the Trump administration has directly communicated its opposition to Apple using Chinese memory, arguing that major U.S. technology companies should pursue alternative solutions.
“The Trump administration is not in favor of that,” Lutnick said following a tour of an Apple manufacturing facility in Houston, according to The Wall Street Journal.
“There have to be other solutions to the memory issue, but it’s not great American companies using Chinese memory,” he added.
Asked whether that position had been communicated to Apple, Lutnick said it had been conveyed “plainly.”
Apple Tests Memory Chips From CXMT and YMTC
Apple has reportedly been evaluating memory chips produced by Chinese semiconductor companies ChangXin Memory Technologies, or CXMT, and Yangtze Memory Technologies, known as YMTC.
The testing could potentially lead to the components being used in Apple devices sold in China as the company searches for ways to ease pressure from the global memory shortage.
Surging demand from artificial intelligence data centers has tightened supplies of memory chips and driven prices sharply higher. That has increased costs for consumer electronics manufacturers, including Apple.
Apple Chief Operating Officer Sabih Khan declined to confirm whether the company was testing Chinese memory suppliers but acknowledged that the scale of the shortage requires Apple to consider a broad range of alternatives.
“We have to look at all options,” Khan said, including efforts to encourage existing suppliers to expand manufacturing capacity in the United States.
Memory components generally require less customization than many of the other parts Apple designs for its devices, potentially making off-the-shelf Chinese chips a viable option.
U.S. Rules Complicate Apple’s Potential Chinese Chip Purchases
U.S. restrictions already place limits on how American companies can interact with CXMT and YMTC.
American companies are required to obtain licenses before sharing certain product information with the Chinese chipmakers, which could complicate the production of customized memory components.
However, Apple remains able to purchase standard off-the-shelf components from the companies and negotiate commercial terms.
Other technology companies have already turned to Chinese memory suppliers. HP and Acer have reportedly begun using CXMT chips in some devices sold outside the United States.
Micron Pushes Washington to Block Chinese Memory Use
Apple’s potential use of Chinese memory has also drawn opposition from Micron Technology (NASDAQ: MU), one of the largest U.S. memory-chip manufacturers.
Micron has urged the Trump administration to discourage Apple from sourcing Chinese chips, arguing that such purchases could undermine domestic semiconductor manufacturing and conflict with Washington’s effort to bring more chip production back to the United States.
The company has committed substantial capital to expanding U.S. manufacturing capacity, strengthening its influence in discussions with policymakers.
Lawmakers from states expected to benefit from new domestic memory-chip investments have also joined the pressure campaign.
Senators representing New York, Indiana and Idaho reportedly wrote to Apple CEO Tim Cook in late July urging the company not to work with the Chinese suppliers.
AI Boom Creates Global Memory Shortage
The dispute comes against the backdrop of a broader supply crunch across the semiconductor industry.
AI data center operators are consuming increasingly large quantities of advanced memory, placing pressure on supply available for smartphones, computers, automobiles and medical devices.
Companies across multiple industries have reportedly asked the U.S. government for assistance in addressing the shortage.
The challenge is difficult to solve quickly because expanding semiconductor manufacturing capacity can take more than a year, limiting the government’s ability to rapidly increase supply.
For Apple, sourcing lower-cost memory from China could help offset rising component costs. For the White House, however, such a move would conflict with its broader strategy of reducing U.S. dependence on Chinese technology supply chains.
Trump Administration Continues Pressing Apple to Reshore Production
The administration has increasingly used trade policy and the threat of tariffs to encourage companies to expand manufacturing in the United States.
Apple has announced significant U.S. investment commitments and has taken steps to increase domestic production of certain components.
The administration has also secured commitments involving Intel manufacturing some Apple chips and Apple sourcing all cover glass for iPhones and Apple Watches from U.S. production.
Despite those initiatives, much of Apple’s supply chain remains concentrated in Asia. The company has also been expanding iPhone assembly capacity in India as it diversifies manufacturing away from China.
Lutnick indicated that Washington intends to continue pushing Apple to relocate more of its supply chain.
“Relentlessly, more and more and more,” Lutnick said when describing the administration’s approach.
He argued that Apple must transition from supply chains historically built around lower labor costs toward advanced manufacturing infrastructure.
“You’re going to see step by step, and piece by piece, they’re going to bring significant portions of their business home,” Lutnick said.
The memory-chip dispute therefore represents more than a procurement decision for Apple. It has become another test of how the company balances component costs, supply security and geopolitical pressure as Washington seeks to accelerate semiconductor manufacturing inside the United States.
