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Apple Inc. is reportedly in advanced discussions to source memory chips from Chinese semiconductor makers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC), as the company works to secure component supplies during a prolonged global memory shortage fueled by the artificial intelligence boom.
According to Bloomberg News, citing people familiar with the matter, Apple is considering using memory chips from CXMT and YMTC primarily for products sold in China. While negotiations are ongoing, no final agreements have been reached.
The move comes as major memory manufacturers, including Micron Technology, Samsung Electronics, and SK Hynix, continue shifting production toward high-bandwidth memory (HBM) used in AI data centers. That transition has significantly reduced the availability of conventional memory chips for consumer electronics, creating supply constraints across the industry.
The shortage has also driven standard DRAM contract prices sharply higher in 2026, increasing production costs for device makers. Apple has already responded by raising prices on several products, including MacBooks, iPads, and Vision Pro devices, making a reliable memory supply increasingly important for its manufacturing plans through 2027.
Both CXMT and YMTC are listed on the U.S. Department of Defense’s Section 1260H blacklist, which identifies Chinese companies believed to support Beijing’s military modernization. Although the designation does not prohibit commercial transactions, it carries reputational and political risks for U.S. companies.
The report added that Apple CEO Tim Cook has sought assurances from officials in the Trump administration, including Treasury Secretary Scott Bessent, over potential regulatory changes. Apple is reportedly concerned that either supplier could eventually be added to the U.S. Commerce Department’s Entity List, which would effectively prohibit American companies from doing business with them.
The reported negotiations have already drawn criticism from lawmakers, including members of the House Select Committee on China, who argue that sourcing critical components from Chinese firms linked to the military could increase U.S. technology dependence on Beijing. Despite the political scrutiny, Apple continues to weigh its options as it balances supply chain stability, rising memory costs, and growing demand for consumer electronics in one of its largest markets.
