US Government Urges Apple to Halt Plans to Source Memory Chips From China, WSJ Reports

The US government has reportedly urged Apple to stop plans to source memory chips from Chinese manufacturers, according to The Wall Street Journal, adding another layer of tension to the technology supply chain between Washington and Beijing.

Apple has been testing memory chips produced by Chinese semiconductor companies CXMT and YMTC as the company looks for ways to manage rising memory costs driven by surging demand for artificial intelligence infrastructure.

The reported intervention comes at a sensitive time for the global semiconductor industry. AI systems require enormous amounts of advanced memory, pushing demand higher and contributing to sharp increases in memory-chip prices.

According to the report, US officials have raised concerns about Apple’s potential reliance on Chinese semiconductor suppliers, particularly as Washington continues efforts to restrict China’s access to critical technologies and reduce US companies’ dependence on Chinese manufacturing.

Apple has reportedly been evaluating chips from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC). Both companies have emerged as important players in China’s efforts to build a domestic semiconductor industry and reduce reliance on foreign suppliers.

The pressure on Apple illustrates the difficult position facing major technology companies. Manufacturers are seeking additional sources of components as AI-related demand puts pressure on global supply chains, while governments are simultaneously pushing companies to reduce exposure to strategic suppliers in China.

Memory chips are particularly important because they are used across smartphones, computers, servers and AI systems. The rapid expansion of data centres and AI applications has created intense demand for memory products, putting further pressure on global supply.

For Apple, sourcing from Chinese suppliers could potentially provide greater flexibility and help manage costs, but doing so could expose the company to increased regulatory and geopolitical risks in Washington.

The reported request also comes as the US continues to tighten scrutiny of China’s semiconductor industry. Washington has increasingly viewed advanced chips and related technologies as strategic assets, while Beijing has been investing heavily in developing domestic alternatives.

Apple has not publicly indicated that it has abandoned its evaluation of Chinese memory suppliers.

If the company ultimately follows the US government’s reported request, Apple could face additional pressure to secure memory supplies from manufacturers outside China at a time when the global market is already experiencing strong demand.

The situation highlights a broader challenge for the technology industry: AI is rapidly increasing demand for critical hardware, while geopolitical tensions are making it more difficult for companies to freely choose the cheapest or most readily available suppliers.