Apple Lobbies Trump Administration for Chinese Chip Access Amidst Rising Costs
Quick Look
- Apple is lobbying the Trump administration to allow it to purchase memory chips from China's ChangXin Memory Technologies (CXMT), a company blacklisted by the Pentagon.
- This move aims to mitigate rising chip costs impacting U.S. tech firms.
AI-generated summary
Why It Matters
Apple is lobbying the Trump administration to allow it to source memory chips from Chinese firm ChangXin Memory Technologies (CXMT), which is blacklisted by the Pentagon. This is driven by rising chip costs affecting U.S. tech companies.
Reports suggest that Apple is actively reaching out to the Trump administration in an effort to source memory chips from ChangXin Memory Technologies, a Chinese firm currently banned by the Pentagon. This initiative aims to combat the financial burden caused by rising chip costs, a prevalent issue for various U.S. tech companies.
Apple is lobbying the Trump administration for clearance to buy memory chips from ChangXin Memory Technologies, a Chinese company the Pentagon has put on a blacklist, the Financial Times reported on Friday.
The iPhone maker has lobbied the White House for approval aimed at easing financial pressure on the company from rising memory chip prices, the newspaper said, citing unnamed sources.
The White House, Apple and CXMT did not respond to requests for comment from Reuters outside business hours.
Also Read: Apple's latest price hike hits India hardest as MacBooks, iPads get up to 70% costlier
The lobbying push underscores the bind facing major U.S. technology companies as soaring memory chip costs collide with Washington's national security restrictions on Chinese chipmakers.
Apple approached the Commerce Department more than a month ago and also engaged other administration officials and allies in Washington, one person told the FT.
CXMT, China's top memory chipmaker, was designated as a Chinese military company by the Defense Department under the Biden administration. The company, among others, was approved by an interagency committee last year for addition to the Commerce Department's Entity List.
U.S. companies cannot ship goods, software and technology to companies on the list without a license, which is likely to be denied.
Apple raised iPad and MacBook prices on Thursday, saying it could no longer shield customers from soaring memory and storage chip costs driven by the AI industry's data center buildout.
Open Questions
- Will the Trump administration grant Apple's request?
- What are the national security implications of allowing access to CXMT?
- How will this affect other US tech companies facing similar chip cost issues?
