Apple’s search for more memory-chip suppliers has reopened a fight in Washington that first disrupted its plans nearly four years ago. A bipartisan group of senators is now urging the company to reject chips from two Chinese manufacturers across its entire global product lineup.
The demand covers Yangtze Memory Technologies Co., whose NAND chips Apple considered for iPhones in 2022, and ChangXin Memory Technologies, a DRAM manufacturer Apple is reportedly evaluating. No agreement has been announced, and available reporting does not establish that chips from either company are used in commercially available Apple products.
The senators sent their letter to Apple on July 29, escalating scrutiny after Apple’s reported push to source CXMT chips. They requested answers by Aug. 21, 2026, including details about component testing, technical information shared with the suppliers and Apple’s discussions with U.S. officials.
Why Washington is challenging the suppliers
CXMT primarily produces DRAM, the working memory used by active applications. YMTC specializes in NAND flash, which retains operating systems, applications and files when a device is powered off.
Apple is reportedly testing CXMT DRAM and discussing purchases from both companies for devices sold in China. The negotiations remain unfinished, according to reporting on the supplier talks.
AI data center construction has strained memory supplies and raised component costs. Apple has also explored Intel and Samsung manufacturing options as it seeks more flexibility across its semiconductor supply chain.
Another memory supplier could provide additional capacity and bargaining leverage with Samsung, SK Hynix and Micron. Lawmakers argue that Apple’s approval could also give a Chinese manufacturer credibility with other global electronics companies.
Their demand covers Apple products worldwide because a component qualified for China-market devices could later be considered for other regions. The senators also asked whether Apple shared proprietary or export-controlled information during supplier testing.
CXMT and YMTC appear on the Pentagon’s Section 1260H list of Chinese military companies. The designation signals national-security concerns but does not generally prohibit ordinary commercial purchases.
YMTC faces separate Commerce Department restrictions. The agency added YMTC to the Entity List effective Dec. 16, 2022. Exports, reexports and in-country transfers of items subject to U.S. export rules generally require a license when YMTC is involved, with applications reviewed under a policy of denial.
The Senate letter cites Apple’s reported consideration of YMTC NAND for some iPhones in 2022. Apple later suspended the plan as congressional opposition grew and U.S. semiconductor controls tightened.
Procurement risks extend beyond Apple
The congressional record does not identify a known device-level vulnerability in either company’s chips. The dispute centers on supplier governance, export controls and dependence on manufacturers Washington considers national-security risks.
Those concerns overlap with wider AI chip bottlenecks affecting memory, advanced packaging and infrastructure planning.
Federal procurement adds another complication. Section 5949 of the fiscal 2023 defense law covers certain government purchases involving semiconductors from named Chinese manufacturers, including CXMT and YMTC.
A proposed federal acquisition rule outlines restrictions scheduled to begin in December 2027, subject to the final rule, statutory exceptions and waivers. Organizations serving federal or defense customers may eventually require greater visibility into Apple’s component suppliers and regional hardware configurations.
Apple’s response to the Aug. 21 deadline may clarify whether it will continue evaluating the suppliers. Until the company confirms a production decision, CXMT and YMTC remain potential — not confirmed — sources for Apple hardware.
Read more: The financial consequences are already emerging as AI-driven memory shortages increase Apple’s hardware costs and complicate enterprise device budgets.