Apple seeks exemption to buy memory chips from blacklisted Chinese suppliers amid AI shortage

Apple is pursuing permission from the Trump administration to purchase memory chips from two Chinese manufacturers, CXMT and YMTC, that are on the Pentagon's blacklist, according to reports from 9to5Mac and Zero Hedge.

"Apple is seeking permission from the Trump administration to purchase memory chips from two Chinese companies (CXMT and YMTC) that are blacklisted by the Pentagon."

The move is driven by an AI-fueled supply crunch and rising component costs. Zero Hedge reported that the company has raised product prices by up to 50 percent recently due to input cost increases from major memory suppliers. Apple previously attempted the same under the Biden administration in 2022 but was unsuccessful, even offering to use the chips exclusively for iPhones sold in China.

"Apple is negotiating to buy memory chips from Chinese manufacturers CXMT and YMTC, both on the Pentagon's blacklist, to ease an AI-driven shortage and rising component costs."

While buying from the blacklisted firms is not legally banned, Apple faces regulatory hurdles tied to national security concerns, as 9to5Mac noted. To limit exposure, any deal is expected to restrict the chips to devices sold only within China, not globally. The situation highlights the tension between supply chain needs and geopolitical restrictions in the tech sector.