Regardless of the opposition of the Trump administration and Congress! Apple CEO insists: Chinese-made memory is also an option

Due to the global shortage of memory chips due to the popularity of artificial intelligence (AI), iPhone maker Apple has taken an open stance on using Chinese-made memory chips. Despite U.S. government restrictions on Chinese semiconductors and political opposition, Apple is still considering diversifying its supply chain. Some analysts believe that if Apple finally decides to use Chinese-made memory chips, the supply volume and bargaining power of Apple's major memory chip suppliers such as Samsung Electronics and SK Hynix will be affected.

"Chosun Ilbo" reported that the US "Time" magazine recently published an exclusive interview with Apple's new chief executive officer (CEO) John Ternus. Ternus said in the interview: "The limited supply of memory chips is obviously a serious crisis. Our basic position is that all options must be considered." Although he did not directly name the products of Chinese companies, analysts believe that Chinese-made memory chips are also an alternative supply solution.

Ternus took over from former CEO Cook on September 1, and Cook became executive chairman of Apple. Ternus listed supply chain issues as a core issue to be solved because investment in AI data centers driven by the AI ​​boom is shaking the supply and demand structure of the memory chip market. Semiconductor manufacturers have focused their production efforts on high-bandwidth memory (HBM) and other AI products, resulting in a shortage of supply and skyrocketing prices of general-purpose memory chips used in smartphones and PCs.

Apple is testing the performance of Chinese-made memory chips. The Financial Times reported in July this year that Apple was testing DRAM from Changxin Memory (CXMT) and was considering installing it on mobile devices sold to China first. The Wall Street Journal also reported in August this year that Apple is testing memory chips produced by CXMT for multiple product lines such as iPhone and MacBook, but has not yet finalized whether to actually adopt them and sign a contract for mass production.

But Apple faces significant political headwinds. Seven cross-party federal senators including Schumer, the Democratic leader of the U.S. Senate, sent a letter to Apple on July 29 this year, asking it to promise not to use products from CXMT and Yangtze River Storage (YMTC). The reason is that these two Chinese companies have been included in the list of Chinese military enterprises by the U.S. Department of Defense and pose national security risks. Turnus said he met with Trump administration officials and discussed the issue.

In addition, memory chip prices are also facing upward pressure. According to the industry, in the first quarter of this year, the supply prices of low-power DRAM for iPhones by Samsung Electronics and SK Hynix increased by 80% and 100% respectively compared with the fourth quarter of last year.

The Wall Street Journal reports that Apple spends tens of billions of dollars on memory chip purchases every year. Some analysts believe that if Apple finally decides to use Chinese-made memory chips, the bargaining power and global supply chain of existing suppliers Samsung Electronics, SK Hynix, and Micron may change.