Apple reportedly in talks to buy memory chips from Chinese firms, drawing US lawmakers' ire over national security concerns

WASHINGTON (CNA/Reuters) -- Apple Inc. is in talks with two Chinese semiconductor manufacturers blacklisted by the U.S. Department of Defense to procure chips, aiming to alleviate the impact of the global memory shortage. This move has drawn strong opposition from several lawmakers.

According to sources familiar with the matter cited by Bloomberg, Apple is seeking to purchase memory components from CXMT and YMTC for use in devices sold in China. The sources, who requested anonymity due to the undisclosed nature of the internal discussions, stated that negotiations between Apple and these two companies are ongoing and no final decision has been made.

Apple's efforts also included lobbying Trump administration officials, such as Treasury Secretary Scott Bessent, by CEO Tim Cook, to help mitigate any potential political fallout from future transactions with these two Chinese chipmakers, the sources said.

Both CXMT and YMTC are on a recently updated list by the U.S. Department of Defense that identifies Chinese entities deemed to be supporting Beijing's military development.

While 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 already voiced opposition, arguing that Apple should not be allowed to incorporate these two Chinese companies into its supply chain.

Spokespersons for the U.S. Departments of Commerce, Treasury, 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 expressed opposition to Apple's potential procurement of parts from these two Chinese memory manufacturers.

"CXMT and YMTC are Chinese military companies that are fueling the Chinese Communist Party's military modernization and pursuit of artificial intelligence (AI) dominance," Mast said. 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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