US Commerce Secretary Opposes Apple’s Potential Purchase of Chinese Memory Chips

US Commerce Secretary Howard Lutnick publicly opposed Apple’s potential procurement of memory chips from two Chinese companies—CXMT and YMTC—according to a report by The Wall Street Journal. Lutnick urged Apple not to rely on Chinese memory chips as the company explores alternatives to address an ongoing global shortage in memory supply.

Background on the Chinese suppliers

YMTC appears on the US Department of Commerce’s Entity List. Both YMTC and CXMT have been designated by the Pentagon as Chinese military companies, based on alleged ties to the People’s Liberation Army. In addition to concerns about competitive disadvantage stemming from state-backed Chinese firms, Apple faces technical constraints: the company typically relies on custom-designed components for its devices.

Apple’s component customization limits

Apple Chief Operating Officer Sabih Khan acknowledged that while Apple customizes many iPhone components, “customization options are limited” for memory chips. That limitation raises the possibility that Apple could turn to off-the-shelf memory chips produced in China. However, if Apple were to require customized memory solutions, it would likely need to share product specifications with either CXMT or YMTC—a step currently restricted under US export control laws and requiring prior licensing approval from the Department of Commerce.

Trump administration’s stance on memory sourcing

Apple has not concealed its intent to broaden its memory supply chain. CEO Tim Cook stated that the United States must “consider all sources of supply.” Reports indicate Apple discussed the issue directly with the Trump administration, and Cook reiterated during the company’s most recent earnings call that Apple is “evaluating all options.”

According to reporting by 9to5Mac, Apple had already begun testing memory chips from CXMT and was exploring a potential deal with YMTC. Those developments prompted bipartisan members of the US Senate to urge Apple to abandon any plans to import memory from Chinese firms.

Lutnick confirmed the administration’s position in a press interview, saying, “Commerce Secretary Howard Lutnick said in a press interview that the Trump administration does not want Apple to buy memory chips from China.” Following a tour of an Apple facility in Houston, he added, “The Trump administration does not support that,” and emphasized, “There must be other solutions to the memory problem, but it is unacceptable for leading US companies to use Chinese memory.”

Lutnick’s remarks came one day after he joined Tim Cook at Apple’s new Advanced Manufacturing Center in Houston, Texas. The event also included Senator Ted Cruz and other federal and local officials. The center forms part of Apple’s $600 billion domestic manufacturing investment initiative, widely viewed as aligned with efforts to maintain strong relations with the Trump administration and secure favorable commercial outcomes.