Apple is in talks to buy memory chips from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), two Chinese semiconductor firms included on a recent US Defense Department blacklist of companies believed to support Beijing’s military efforts [1, 2, 3, 4, 5].

The company plans to use chips from CXMT and YMTC only in devices sold within China to reduce political backlash at home and abroad [1, 2, 3, 5]. No final deal has been reached and negotiations remain ongoing [1, 2, 3, 4, 5].

Apple currently depends on three other suppliers for memory chips: Samsung Electronics, SK Hynix, and Micron Technology [2, 3, 5]. The two targeted Chinese suppliers would bring Apple’s total to five[source s2,s3,s6].

The global memory chip shortage, driven by surging AI data center demand, has led many chip manufacturers to shift production toward higher-margin AI markets, contributing to tighter supplies for consumer electronics [1, 2, 3, 6, 5]. Apple has raised prices on Macs, iPads, HomePod, and Vision Pro products in late June and early July to offset increased memory chip costs [2, 5].

Apple CEO Tim Cook has lobbied Trump administration officials, including Treasury Secretary Scott Bessent, seeking to ease opposition to the purchase from blacklisted firms [1, 2, 3, 4, 6]. However, some US government officials, including members of Congress, oppose Apple’s plans. Brian Mast, chair of the House Foreign Affairs Committee, said CXMT and YMTC "are Chinese military companies supporting the Chinese Communist Party’s push for military modernization and AI dominance" [5].

The US Commerce, Treasury, and White House did not respond to requests for comment, and Apple declined to comment [1, 2, 3, 5]. Meanwhile, semiconductor industry group SEMI urged the US government to avoid market-distorting measures and instead support American manufacturing and long-term supply agreements, including tax incentives, to alleviate chip shortages [6].

On July 1, SEMI formally warned US officials against interventions that could disrupt memory chip markets and called for policies supporting industry stability [6]. The Apple negotiations with Chinese firms were reported on July 2, reflecting efforts to address supply constraints amid political tensions [1, 2, 3, 4, 5].

Negotiations between Apple and CXMT and YMTC are ongoing, with no deal finalized as of early August 2026 [1, 2, 3, 4, 5].