“Financial Times” writes that “Apple” is seeking permission from the Trump administration to buy memory chips from a blacklisted Chinese company. The move will help meet production demand amid ongoing global memory supply shortages.
Demetri Sevastopoulos and Michael Acton, reporter The Financial Times:
Apple is lobbying the Trump administration to allow it to buy memory chips from CXMT, a Chinese company blacklisted by the Pentagon for alleged links to the People’s Liberation Army, according to six people familiar with the matter.
The iPhone maker has been lobbying for the White House’s blessing to ease the financial pressure on the company due to rising memory chip prices.
According to the report, Apple reached out to the commerce department a month ago before expanding its lobbying efforts to get the clearance recently.
The report explains that while Apple could technically buy memory chips from Chinese manufacturers, the Pentagon’s restrictions complicate the matter.
Apple is not prohibited from buying chips from CXMT or another Chinese memory chip maker, YMTC. However, the Pentagon has blacklisted both companies from the Chinese Military Company. The so-called 1260H list contains dozens of Chinese groups allegedly linked to the PLA that undermine US national security.
Meanwhile, Apple increased costs dramatically A number of products, including Macs and iPads, rose on Thursday, led by memory and storage chip prices.
Apple CEO Tim Cook told the Wall Street Journal about this a week ago had no choice but to raise prices. In the article, Cook hinted that Apple is interested in buying memory chips from Chinese firms if allowed.
China has national champion companies in memory and storage, but because of national security regulations, American companies will likely require a license to work with them. Asked if those restrictions should be relaxed, Cook said: “I think everything should be on the table,” adding: “I think we have to look at all supplies.”
Now it looks like Apple is pushing harder for this solution after last week’s interview and this week’s price hikes didn’t pay off. You can read the latest report in full here The Financial Times.
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