Apple Seeks Trump Administration Approval to Buy Chinese Memory Chips as AI Boom Drives Up Component Costs

Apple is lobbying the Trump administration for permission to source memory chips from Chinese manufacturer ChangXin Memory Technologies (CXMT), highlighting the growing tension between Washington’s national security policies and the soaring cost of components powering the artificial intelligence boom.

According to a Financial Times report, the iPhone maker has been pressing U.S. officials to grant it clearance to purchase memory chips from the Chinese supplier, arguing that rapidly rising memory prices are increasing manufacturing costs across its product lineup.

The effort exposes the difficult position facing major American technology companies, which are trying to secure enough advanced components to remain competitive while complying with increasingly stringent U.S. restrictions on China’s semiconductor industry.

The Financial Times reported that Apple first approached the U.S. Commerce Department more than a month ago and has since broadened its lobbying effort by engaging other administration officials and allies in Washington. The objective is to obtain approval that would allow Apple to purchase memory chips from CXMT despite U.S. restrictions on the company.

The request comes as memory prices have surged amid an unprecedented buildout of AI infrastructure. Demand from hyperscale cloud providers and AI developers has tightened supplies of advanced memory chips, pushing costs sharply higher for electronics manufacturers worldwide.

Apple acknowledged the pressure earlier this week when it announced price increases for several products, saying it could no longer absorb the rising costs of memory and storage components. The company raised prices on iPads and MacBooks on Thursday, marking one of its clearest acknowledgements that AI-driven semiconductor demand is beginning to affect consumer electronics pricing.

CXMT Caught In U.S.-China Technology Rivalry

ChangXin Memory Technologies has become China’s leading domestic memory chip producer and is central to Beijing’s efforts to reduce reliance on foreign semiconductor suppliers.

However, the company has increasingly come under scrutiny from Washington. During the Biden administration, the U.S. Department of Defense designated CXMT as a Chinese military company, alleging links between the firm’s activities and China’s military-industrial base.

The company was also approved by an interagency committee last year for inclusion on the Commerce Department’s Entity List, one of Washington’s most powerful export control mechanisms.

Companies placed on the Entity List face strict restrictions on access to U.S. technology. American firms cannot export goods, software, or technology to listed entities without obtaining a government license, and such license applications are generally presumed to be denied.

While the Pentagon blacklist does not automatically prohibit commercial transactions, it adds another layer of political and regulatory scrutiny around dealings with the company.

Additionally, Apple’s lobbying campaign underpins broader strains across the global semiconductor industry as artificial intelligence reshapes supply chains. The explosive demand for AI infrastructure has driven record orders for high-bandwidth memory (HBM), DRAM, and NAND flash chips used in data centers, reducing available supply for consumer electronics manufacturers.

Memory producers, including Micron Technology, SK Hynix, and Samsung Electronics, have prioritized higher-margin AI-related products, contributing to tighter inventories and higher prices for smartphones, tablets, and personal computers.

Those dynamics have benefited memory manufacturers financially. Micron recently forecast record quarterly revenue and disclosed that customers have committed $22 billion under long-term supply agreements, while SK Hynix has emerged as one of the world’s most valuable semiconductor companies on the strength of AI-related demand.

For hardware manufacturers such as Apple, however, the surge in component prices threatens profit margins unless higher costs can be passed on to consumers.

Apple’s request also illustrates the increasingly complex balancing act confronting U.S. technology companies operating amid escalating geopolitical tensions between Washington and Beijing.

Successive U.S. administrations have expanded export controls and investment restrictions targeting China’s semiconductor sector, arguing that advanced chip technologies could strengthen Beijing’s military capabilities and national security apparatus.

At the same time, many American companies continue to depend on China’s manufacturing ecosystem and supply chains for critical components.

Should the Trump administration grant Apple an exemption, it could provide temporary relief from elevated memory costs while signaling a degree of flexibility for commercially significant transactions. Conversely, a rejection would reinforce Washington’s commitment to restricting Chinese semiconductor firms, even as American companies face rising production costs driven by the global AI race.