Apple Seeks Trump Administration's Permission to Buy Memory Chips from Blacklisted Chinese Company

Apple is seeking permission from the Trump administration to buy memory chips from a Chinese company blacklisted for its ties to the People’s Liberation Army, according to the Financial Times. The company, CXMT, was recently added to the Pentagon’s list of entities linked to the Chinese military.

While Apple is not technically barred from doing business with CXMT, proceeding without approval could lead to repercussions from the US government. The Defense Department cannot contract with or use products from companies on the list, even through third parties.

Apple approached the Commerce Department about the matter a month ago and is also lobbying its connections in Washington. Purchasing from CXMT could help the company navigate the current memory chip shortage, which has already led to price increases across its product line. Recent hikes include a $300 increase for the 1TB M5 MacBook Pro, a $100 rise for the entry-level MacBook Neo, and a $200 increase for all iPad Pros.

Currently, Apple buys memory chips from American company Micron and South Korea’s Samsung and SK Hynix. Congressional leaders, including John Moolenaar, who leads efforts to investigate China’s geopolitical influence, are expected to object if the administration approves Apple’s plan.

“Apple choosing to partner with a Chinese military company would be a grave mistake,” Moolenaar told the Financial Times.