Apple Tests Blacklisted Chinese Chips to Combat Memory Shortage

Apple Inc. has begun testing DRAM memory chips from ChangXin Memory Technologies (CXMT), a state-backed Chinese supplier, for devices sold within China. The move follows a global memory shortage driven by AI infrastructure demand, which reduced factory capacity for consumer electronics and forced Apple to raise MacBook and iPad prices by up to 20 percent in late June 2026. CEO Tim Cook described the memory situation as "unsustainable" and has personally lobbied the Trump administration and the U.S. Department of Commerce for a license to bypass national security restrictions.

CXMT is currently on the U.S. Department of Defense 1260H list of companies linked to the Chinese military and is approved for addition to the Commerce Department's Entity List. Despite these designations, the Trump administration has recently delayed adding the firm to a trade blacklist to avoid escalating tensions with Beijing during trade negotiations between President Donald Trump and President Xi Jinping.

U.S. lawmakers have strongly opposed the partnership. Representative John Moolenaar, chair of the House China committee, called the potential deal a "grave mistake" that would increase U.S. tech dependency on China. While Apple seeks to diversify its supply chain and reduce costs, analysts suggest the move is also a tactical maneuver to gain leverage in price negotiations with dominant Korean suppliers Samsung Electronics and SK Hynix.