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Apple is asking US President Donald Trump’s administration for approval to source memory chips from a Chinese supplier linked to Beijing's military, highlighting how the AI boom is reshaping global semiconductor supply chains.
According to the Financial Times, the iPhone maker has spent more than a month lobbying the Commerce Department, the White House, and other officials for reassurance over buying memory chips from ChangXin Memory Technologies (CXMT).
CXMT appears on the Pentagon's 1260H list of companies alleged to have ties to the People's Liberation Army. While that designation does not prohibit Apple from purchasing its products, it carries political and reputational risks. The company has also reportedly been approved for future addition to the Commerce Department's Entity List, although that restriction has not yet taken effect.
Why Apple is under pressure
Memory chips, once a throwaway line item in gadgets, have become scarce and expensive as AI data centers hoover up global DRAM supply. Apple raised prices across MacBooks, iPads, and other hardware this past week, telling customers the cost increases had become unsustainable. The announcement wiped billions of dollars off Apple's market value in a single day and helped trigger a broader tech selloff.
Apple currently sources memory from Micron in the United States and South Korean manufacturers Samsung and SK Hynix. Securing CXMT as an additional supplier could help reduce cost pressures as traditional suppliers prioritize higher-margin AI products.
Political backlash builds in Washington
The push is already drawing resistance from lawmakers and policy experts who argue it would deepen US dependence on Chinese semiconductor supply chains.
Republican congressman John Moolenaar warned that “Apple choosing to partner with a Chinese military company would be a grave mistake,” according to the Financial Times, warning that it would make "our country's tech industry and economy more dependent on China at a time when we must build secure tech supply chains with our allies."
Former officials and security experts also cautioned that allowing the deal could undermine broader US efforts to decouple sensitive supply chains from China, particularly in strategic sectors like semiconductors.
Reading between the lines
What makes this moment different is timing. The lobbying push comes right after Trump met Xi Jinping in Beijing, a stretch during which the White House has deliberately held off on new export controls to keep trade talks alive.
That diplomatic pause is likely the opening Apple is trying to slip through. But the administration's own signals have been mixed; the Pentagon briefly removed CXMT from its blacklist earlier this year before abruptly restoring it, reportedly in response to White House anger.
If Apple succeeds, it could open the door for other US tech firms to seek similar exemptions, weakening the practical impact of existing blacklists. If it fails, companies may continue passing rising component costs directly to consumers.
Risks and tradeoffs
For Apple, this is straightforwardly about protecting margins it has enjoyed for years on memory and storage upgrades. For Washington, it's about whether the convenience of now is worth the dependency later.
Allowing Apple to source from CXMT could stabilize short-term pricing, but critics warn it may increase reliance on a Chinese state-backed semiconductor player at a time when Washington is actively trying to reduce such dependencies.
There is also regulatory uncertainty. Even if approval is granted today, future administrations or agencies could tighten restrictions again, leaving Apple exposed to sudden supply chain disruptions.
There's no sign yet that the White House has decided either way. Congress would likely object loudly if it did say yes. For now, consumers are left footing higher prices while Apple and Washington argue over where the chips should come from.
Also read: AI demand has created chip bottlenecks that are pushing cloud providers, hardware makers, and model developers to rethink supply chains.