Memory crisis: Is Apple already negotiating with sanctioned Chinese companies? | News

Apple has been trying to expand its list of RAM chip suppliers for some time. The reason is the shortage of memory components that has been going on for many months, which has led to significantly rising prices for computers, smartphones and tablets, among other things. The Californian manufacturer has been able to keep the prices for the current iPhone range stable so far, but the next generation expected for autumn is likely to be more expensive. The Californian manufacturer is reportedly considering working with Chinese RAM producers to at least mitigate the increases; It is almost certain that they cannot be completely avoided. In this context, Apple has reportedly recently requested special permission from the US government (see ).

Report: Negotiations are ongoing, but no conclusion is yet in sight
In parallel to the lobbying work in Washington, Apple is already negotiating with two Chinese RAM manufacturers, according to a report from Bloomberg (paywall). ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) are among the largest companies of their kind in the Middle Kingdom. However, no conclusion has yet been reached, write journalists Mark Gurman and Maggie Eastland in their article. As is well known, there is also a possible sword of Damocles hanging over the negotiations: both CXMT and YMTC are on a blacklist by the US Department of Defense because they allegedly have close ties to the Chinese military. YMTC is also sanctioned by the US Department of Commerce.

Tim Cook speaks with US Treasury Secretary
In Washington, Apple therefore wants, among other things, to prevent CXMT from being added to the Commerce Department’s blacklist. If that were to happen, Apple would not be allowed to buy chips from the Chinese manufacturer. According to Bloomberg, Tim Cook personally spoke to several government officials, including Treasury Secretary Scott Bessent. One of Apple’s suggestions is to only install the RAM components purchased from CXMT and YMTC in devices produced for the Chinese market.

Negotiations are politically and economically sensitive
However, the ongoing negotiations could make it more difficult for Apple to obtain the special permission it is seeking. They may be grist for the mill of several high-ranking US government officials and parliamentarians who are strictly against deals with CXMT and YMTC. From a purely legal perspective, Apple is allowed to work with the two sanctioned Chinese companies even without an exemption from the Trump administration. However, such a decision would be politically and economically delicate. It could lead to Apple falling out of favor in Washington and the company being thrown various sticks between its legs, including expanded sanctions and stricter export regulations.