US Government Pressures Apple to Abandon Chinese Memory Chips
Commerce Secretary Howard Lutnick is urging Apple Inc. to stop sourcing memory chips from Chinese suppliers to protect national security and promote domestic manufacturing.
The United States government is pressuring Apple Inc. to abandon plans to source memory chips from Chinese manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies. Commerce Secretary Howard Lutnick stated that the Trump administration opposes American companies using Chinese memory, citing national security concerns and the goal of reshoring manufacturing to the United States.
Apple reportedly tested these chips to mitigate soaring global memory prices and supply shortages driven by AI data-center demand. Chief Operating Officer Sabih Khan noted that memory components require little customization and stated the company must examine all supply options. While Apple can purchase standardized chips without government approval, customized components may require licenses from the Department of Commerce.
The Department of Defense and the Commerce Department have flagged the Chinese firms for alleged ties to the People's Liberation Army and state subsidies. Micron Technology and several U.S. senators have lobbied the administration to block the procurement, arguing that such partnerships undermine domestic semiconductor production.
Despite investing $600 billion in U.S. manufacturing, including a new Advanced Manufacturing Center in Houston, the majority of Apple's supply chain remains in Asia. The administration continues to push the company to shift more production home, with Lutnick asserting that Apple is capable of building a supply chain based on advanced domestic manufacturing.
