U.S. Weighs Conditional Approval for Apple to Procure Chinese Memory Chips
2026-08-24
The latest reports indicate that the U.S. government is evaluating a special arrangement: considering 
conditional approval for Apple to purchase DRAM and NAND chips from CXMT and YMTC, with the restriction that such components would be used solely in Apple devices sold within the Chinese market.
conditional approval for Apple to purchase DRAM and NAND chips from CXMT and YMTC, with the restriction that such components would be used solely in Apple devices sold within the Chinese market.Apple's Supply Crunch and Cost Pressure
Surging demand from AI data centers for high-bandwidth memory has severely squeezed the supply of consumer-grade DRAM and NAND, driving contract prices sharply higher. Apple has already taken the rare step of raising prices across its entire hardware lineup, including Mac, iPad, and Vision Pro. To ease the crunch, Apple has not only initiated product validation testing of CXMT's DRAM chips, but CEO Tim Cook also personally lobbied the Trump administration in June, engaging directly with Treasury Secretary Scott Bessent and other senior officials to seek a political risk buffer.
Pushback and Political Maneuvering
However, the plan has encountered fierce resistance in Washington. On August 15, U.S. Commerce Secretary Howard Lutnick publicly stated he was "completely opposed" and claimed he had "plainly informed" Apple's management. Furthermore, a bipartisan group of senators led by New York Democrat Chuck Schumer and Indiana Republican Jim Banks sent a joint letter to Cook, demanding that Apple formally commit by August 21 to purchasing no chips whatsoever from CXMT or YMTC. The lawmakers warned in the letter that even if restricted to the China market, once chips pass Apple's quality certification, expanding them into the global supply chain is "only one procurement decision away." They also questioned whether such purchases would generate revenue and reputational gains for Chinese military-affiliated enterprises, constituting a national security risk.
Domestic Investment and Geopolitics
Notably, the senators who signed the letter hail predominantly from New York, Indiana, and Idaho. Memory giant Micron Technology is investing tens of billions of dollars to build advanced DRAM fabs in New York and Idaho, while South Korea's SK Hynix is pouring nearly $4 billion into an HBM packaging and R&D center in Indiana. The CHIPS and Science Act, championed by these lawmakers, is driving a massive expansion of domestic memory capacity. If Apple pivots to Chinese suppliers, it would undoubtedly undermine the strategic returns on these colossal investments.
Currently, CXMT has already been placed on the Pentagon's Section 1260H list, while YMTC was added to the Commerce Department's Entity List as early as 2022. Although Apple does not require formal government approval to conduct commercial procurement, it is acutely aware that if CXMT is escalated to the Entity List, the supply chain would snap instantly. Therefore, Apple's core objective extends beyond merely securing a procurement license; it is equally focused on ensuring that CXMT does not face even stricter export control escalation.
SEMICON Spot IC Supplier
SEMICON secures verified spot inventory across memory, FPGA, power and analog, shipping same-day from Hong Kong and Shenzhen. Genuine components, competitive pricing and agile BOM support keep OEM lines running. Hot Picks IC Recommendations:
● EP4SGX180KF40C4G — Intel Stratix IV GX FPGA, 180K logic elements, 24 transceivers up to 11.3 Gbps, 40nm industrial-grade for high-performance communications and computing.
● TPS62065QDSGRQ1 — TI automotive-grade 3MHz synchronous buck converter, 1.5A output, AEC-Q100 qualified in WSON for rugged automotive power rails.
● OP2177ARMZ — ADI ultralow-offset dual precision op-amp, 1.3MHz bandwidth, 60µV max offset, MSOP-8 for industrial sensor conditioning.
● STPMIC25APQR — STMicroelectronics multi-rail PMIC with 7 buck converters and 8 LDOs in WFQFN-56, purpose-built for STM32MP2x processor power management.
Email: info@semicone.com
Fujifilm Expands Chip Material Production Capacity
Broadcom Plans to Raise Up to $100 Billion in Debt for AI Chip Financing
Related Article
Korea's Supreme Court upholds a KRW 18.66B fine on Broadcom for abusing its market position and forcing Samsung into a long-term chip supply deal through cutoffs.
Broadcom's Korean Case Ends in Final Ruling: Supply Leverage Cannot Become a Tool of Coercion
NXP issues its third 2026 price hike, effective January 1, 2027, without disclosing increases or part lists, as costs and lead times stretch and industry-wide price hikes continue.
NXP's Three Price Rounds in 2026: Increases, Part Numbers, and Cost Pressure
