Apple is lobbying the administration to receive permission to purchase memory chips from the blacklisted Chinese supplier ChangXin Memory Technologies.
Apple is seeking official approval from the administration to source memory chips from ChangXin Memory Technologies, a company currently blacklisted due to its ties to the Chinese military. While not strictly prohibited from using the supplier, Apple seeks the green light to avoid potential political criticism and reputational damage. Apple argues that Micron Technology is currently charging excessive prices for memory, citing gross profit margins that climbed above 80% as AI demand outpaced supply. In response, Micron Technology has lobbied the administration to reject Apple's request. Micron argues that the current high prices reflect genuine scarcity caused by years of aggressive negotiations by device makers that discouraged new manufacturing investment. Micron Technology suggests that the memory shortage will be best resolved by increasing domestic production capacity, with the company planning to spend $250 billion in the United States. While Apple seeks a short-term cost reduction, the administration faces a choice between granting Apple immediate relief or prioritizing the long-term goal of expanding U.S. manufacturing.