Tim Cook presented to Trump a plan to purchase chips from China for use outside the USA
Apple has asked the US administration to approve the purchase of memory chips from Chinese firms CXMT and YMT for devices sold outside the US. The initiative aims to mitigate the global chip shortage.
Apple is asking the White House to approve a plan to use memory chips from Chinese companies in devices sold outside the USA, in an effort to cope with the global shortage of these components and prevent further price increases, according to a report by The Wall Street Journal. Advanced memory chips are in high demand in AI data centers and are necessary to enable modern AI processors to reach the full potential of their processing capabilities. The production of these chips is currently controlled by three companies — the American Micron, and Samsung and SK Hynix from South Korea — which are struggling to meet demand and are investing hundreds of billions of dollars in expanding their production capacities.
The high demand has created a widespread shortage of memory chips, including simpler chips not required by AI infrastructure, and has led to an increase in their prices. As a result, many companies, including Apple, have been forced to raise prices on products such as smartphones, computers, and tablets. Against this backdrop, it was reported in June that Apple is asking the Donald Trump administration for a green light to purchase memory chips from the Chinese company CXMT, which is on the Pentagon's blacklist due to ties to the Chinese military.
Now, The Wall Street Journal reports that Apple CEO Tim Cook and other company executives have met in recent weeks with Donald Trump, Secretary of Commerce Howard Lutnick, and Secretary of the Treasury Scott Bessent. They presented a plan to purchase memory chips from CXMT and its Chinese peer YMT for use in devices that will all be sold outside the USA. In the meetings, Apple argued that the move would help mitigate the global memory chip shortage and would allow for price reductions for customers in the USA as well.
On the other hand, Micron CEO Sanjay Mehrotra warned in meetings with Lutnick and other officials that granting Chinese companies permission to sell memory chips to American companies could destroy the local industry, similar to how manufacturing in China decimated the manufacturing and steel industries of the USA. According to the company, it can help reduce the memory chip shortage by building production facilities in the USA more quickly. The White House responded:
«The administration will promote opportunities and economic relief for the American people while maintaining our national security.»
