Apple seeks Trump administration approval to buy blacklisted Chinese memory chips: Report

Apple has reportedly approached the Trump administration to secure approval for purchasing memory chips from Chinese manufacturer ChangXin Memory Technologies (CXMT), despite the company being on a Pentagon blacklist, as the iPhone maker looks to ease mounting cost pressures linked to rising chip prices, according to a report by the Financial Times.

The report said Apple has been lobbying the White House in an effort to gain clearance for the purchases, arguing that sharply increasing memory chip costs are placing financial strain on the company.

Neither the White House, Apple nor CXMT commented on the issue.

Apple turns to Washington amid rising chip costs

According to the Financial Times, Apple first approached the Commerce Department more than a month ago and has since engaged with other administration officials and allies in Washington to seek approval for sourcing memory chips from the Chinese company.

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The reported lobbying effort highlights the challenge facing major technology companies as escalating memory chip prices coincide with Washington's restrictions on Chinese semiconductor manufacturers over national security concerns.

CXMT remains under US restrictions

CXMT, China's leading memory chipmaker, was designated a Chinese military company by the Defence Department during the Biden administration. The company was also approved by an interagency committee last year for inclusion on the Commerce Department's Entity List.

Companies in the United States are prohibited from exporting goods, software or technology to firms on the Entity List without obtaining a licence, which is generally expected to be denied.

Apple increased prices for iPads and MacBooks on Thursday, saying it could no longer absorb the sharp rise in memory and storage chip costs driven by growing demand from the artificial intelligence industry's rapid expansion of data centres.