Micron Lobbies Trump Administration to Block Apple Chinese Chip Plan

Apple Inc. is lobbying the Trump administration to permit the procurement of memory chips from Chinese firms ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC). Apple CEO Tim Cook and other executives initially pitched a plan to use these chips for products sold outside the United States to combat price hikes caused by an AI-driven global memory shortage. The request later expanded to include chips for products sold worldwide.

Micron Technology is opposing the move, with CEO Sanjay Mehrotra warning Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent that allowing state-subsidized Chinese firms into the supply chain could decimate the domestic semiconductor industry. Mehrotra compared the potential impact to the historical decline of the American steel and manufacturing sectors. Micron claims it can alleviate the shortage by accelerating domestic plant construction.

The dispute has revealed deeper tensions, with Apple accusing Micron of price gouging and insufficient investment. Micron countered that Apple's aggressive price negotiations in the past discouraged the investments necessary to prevent the current shortage. The U.S. government's decision remains pending as the White House balances consumer prices against national security. Both CXMT and YMTC are designated as Chinese military companies by the Pentagon, and YMTC is on the Commerce Department's Entity List.