Apple Wants Blacklisted Chinese RAM to Lower iPhone Costs

Apple is reportedly seeking permission from the Trump administration to buy RAM from ChangXin Memory Technologies, or CXMT, as rising component costs put pressure on the prices of its devices, including the iPhone.

The Chinese memory manufacturer has been placed on a Pentagon blacklist over its alleged links to China’s military.

According to the Financial Times, Apple has asked the White House to approve the purchases to reduce the financial impact of rising memory chip prices, and hopefully, lower iPhone prices in the future.

Apple Seeks Approval

Apple reportedly approached the US Commerce Department more than a month ago. The company also contacted other administration officials and allies as part of its lobbying effort.

The White House, Apple, and CXMT did not respond to Reuters’ requests for comment outside regular business hours.

CXMT Faces US Restrictions

CXMT is China’s largest memory chip manufacturer. The US Defense Department designated it as a Chinese military company during the Biden administration.

An interagency committee also approved CXMT for addition to the Commerce Department’s Entity List last year.

US companies cannot provide goods, software, or technology to companies on the Entity List without a government licence. Such licence applications are likely to be rejected.

Memory Prices Rise

Apple’s request shows the difficulties facing US technology companies as higher memory costs conflict with Washington’s restrictions on Chinese chipmakers.

Demand from the artificial intelligence industry and the expansion of data centres have driven up the prices of memory and storage chips.

Using CXMT as a supplier could help Apple reduce its component costs and limit pressure on iPhone prices.

Apple raised the prices of its iPads and MacBooks on Thursday after saying it could no longer protect customers from rising memory and storage costs.