Apple's Plan to Buy Memory Chips from Chinese Firms Faces Opposition Over National Security Concerns

(CNA Washington, July 2nd, Combined News from Abroad) Apple Inc. is in talks with two Chinese semiconductor manufacturers blacklisted by the U.S. Pentagon to procure memory chips, aiming to mitigate the impact of the global memory shortage. This move has drawn strong opposition from several members of Congress.

According to Bloomberg, citing sources familiar with the matter, Apple is seeking to purchase memory components from CXMT and YMTC for use in devices sold in China. As the discussions are confidential internal matters, the sources, who requested anonymity, stated that Apple's negotiations with these two companies are ongoing and no final decision has been made.

Sources indicated that Apple's efforts also include CEO Tim Cook lobbying Trump administration officials, including Treasury Secretary Scott Bessent, to help mitigate any potential political fallout from future transactions with these two Chinese chip manufacturers.

Both CXMT and YMTC are included on a recently updated list by the U.S. Department of Defense, which identifies Chinese entities believed to support Beijing's military development.

Although Apple does not require formal U.S. government approval to purchase chips from CXMT or YMTC, it could still face strong backlash from national security hawks in Washington amid escalating U.S.-China tensions, particularly concerning advanced technology.

Some Trump administration officials have expressed opposition, arguing that Apple should not be allowed to incorporate these two Chinese companies into its supply chain.

Spokespersons for the U.S. Department of Commerce, Treasury Department, and the White House did not respond to requests for comment. Apple declined to comment.

U.S. lawmakers advocating for a tough stance on China, including House Foreign Affairs Committee Chairman Brian Mast, have voiced opposition to Apple's potential procurement of parts from these two Chinese memory manufacturers.

"CXMT and YMTC are Chinese military companies that are helping the Chinese Communist Party advance its military modernization and pursue dominance in artificial intelligence (AI)," Mast stated. His committee has jurisdiction over U.S. export control programs.

He added, "Allowing this decision to move forward would destroy the President's agenda to secure our supply chains and win the AI arms race." (Compiled by Chen Yu-ting) 1150702

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