US Government Pressures Apple to Reject Chinese Memory Chips

The United States government is pressuring Apple Inc. to cancel plans to source memory chips from Chinese manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies. US Commerce Secretary Howard Lutnick stated that the Trump administration opposes American companies using Chinese memory, citing national security concerns and a policy goal to return manufacturing to the United States.

Apple considered the shift to mitigate global supply shortages and rising chip prices. Chief Operating Officer Sabih Khan noted that memory components require little customization, making the switch feasible. However, the Department of Defense and the Commerce Department flagged the Chinese firms for alleged state subsidies and ties to the People's Liberation Army.

Micron Technology lobbied the White House against the move, arguing that Apple's plan contradicts domestic manufacturing policies. Despite Apple's $600 billion investment in US manufacturing, including a new center in Houston, the administration remains opposed to the deal. CEO Tim Cook has argued that the US should consider all available supply options to maintain stability.