US Lawmakers Urge Apple to Reject Memory Chips From Chinese Suppliers

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New Delhi — A bipartisan group of U.S. lawmakers has urged Apple Inc. to abandon plans to source memory chips from Chinese semiconductor companies ChangXin Memory Technologies and Yangtze Memory Technologies Co., citing national security concerns.

In a letter to Apple Chief Executive Officer Tim Cook, the senators asked the company not to use chips from CXMT or YMTC, including in devices intended only for sale in China.

The group was led by Republican Sen. Jim Banks and Democratic Sen. Chuck Schumer. The lawmakers noted that both companies appear on a Pentagon list of Chinese entities believed to support China’s military.

“This short-sighted move would be a mistake,” the senators wrote.

They warned that the decision could make one of the world’s largest consumer electronics companies dependent on suppliers designated by the U.S. government as Chinese military companies.

Apple has reportedly considered buying memory chips from the two companies amid a global shortage that has driven up prices. Demand from artificial intelligence hardware manufacturers, including Nvidia, has placed additional pressure on memory supplies.

Apple raised prices across its Mac, iPad, home device and Vision Pro product lines in June, citing higher memory costs.

The senators argued that even if Chinese-made memory chips were initially used only in products sold in China, they could later enter Apple’s global supply chain through broader procurement decisions.

They also questioned whether using the Chinese suppliers would produce meaningful cost savings, citing analysis indicating that CXMT’s prices are sometimes higher than those of competing manufacturers.

The lawmakers asked Apple to commit by Aug. 21 that it would not incorporate chips from CXMT or YMTC into its products.

They also requested information about Apple’s discussions with the companies, including whether technical information had been shared and whether Apple had sought priority supplies from U.S. or South Korean memory manufacturers.

Apple did not immediately respond to the letter, according to media reports. (Source: IANS)