Apple lobbies the Trump administration to allow the purchase of memory chips from Chinese CXMT!

Apple is lobbying the Trump administration for approval to purchase memory chips from CXMT (Truong Ham Memory Technology Company) - currently on the Pentagon's banned list because it is believed to have links to the Chinese military. Just a few days ago, Apple announced a series of product price increases because it could not withstand the sharp increase in memory chip prices because chip makers are shifting their capacity to serve AI. CEO TIm Cook has publicly criticized chip manufacturers for intentionally raising prices excessively. On the contrary, a Micron leader said that "some customers" paid floor prices in the most recent discount cycle, leaving the company without enough money to invest in expanding capacity, leading to the current shortage.

Everyone has their reasons and now back to the main news: Apple wants to buy chips from CXMT, so who is CXMT? CXMT is currently China's largest domestic memory chip manufacturer and specializes in DRAM. Q1, 2025, CXMT has accounted for nearly 6% of the global DRAM market share and Q1, 2026 revenue shows that CXMT has grown extremely strongly with 700% YoY, profits reaching 25 billion Yuan. However, CXMT has been included in the list of Chinese Military Companies by the Pentagon - that is, businesses suspected of having connections or contributions to the Chinese military under the NDAA Act. This company is also suspected of accessing DRAM technology through indirect sources or personnel from Korean firms. Specifically, last year, 10 Samsung Electronics employees were arrested for allegedly smuggling technology to CXMT. Apple approached the US Department of Commerce and related agencies to ask for permission to transact with CXMT because doing business with a company on the banned list for security reasons would require a special license and this license would almost certainly be denied. From Washington's perspective, Apple buying chips from a Chinese company could help the country's semiconductor industry accelerate, and the United States does not want this to happen. On the contrary, Apple believes that DRAM is a normal component, purchasing from other suppliers will help reduce costs and risks of supply chain disruption. If Apple is allowed to buy CXMT's memory chips, will they be used on all Apple products? CXMT has only recently been able to produce DDR5 memory, and although it has kept up with the current generation of chips, it is unlikely to be able to meet Apple's strict requirements for components. In addition, CXMT is still using the old process to make memory chips with optical technology different from DUV due to limited access to advanced EUV technology. Therefore, if the two sides reach a purchase agreement, the most feasible option is: Apple will equip CXMT chips on devices sold in the Chinese market - a scenario that will both help Apple have more supply and reduce legal risks in other markets. Reuters; ChinaTalk; Tom's Hardware