Apple in Talks With Blacklisted Chinese Chip Firms for Devices

WHO:

Bloomberg - Apple Inc. is negotiating with ChangXin Memory Technologies Inc. (CXMT) and Yangtze Memory Technologies Co. (YMTC), both of which are on a Pentagon blacklist.

Yahoo Finance - Apple Chief Executive Officer Tim Cook has appealed to Trump administration officials, including Treasury Secretary Scott Bessent.

WHAT:

Bloomberg - Apple is in negotiations to purchase chips from CXMT and YMTC for use in devices sold in China.

Yahoo Finance - Apple is facing a global memory shortage that has led to price hikes of up to 20% across its MacBook, iPad, and Vision Pro lines.

Yahoo Finance - Standard DRAM contract prices surged by an estimated 55% to 60% in early 2026.

WHERE:

Bloomberg - The chips are intended for devices sold in China.

Yahoo Finance - CXMT and YMTC are located in China and are on the U.S. Defense Department's Section 1260H list.

WHEN:

Yahoo Finance - Apple aims to secure chip supplies through 2027.

WHY:

Yahoo Finance - The negotiations are driven by a global memory crunch exacerbated by the artificial intelligence boom, which has shifted production away from standard consumer electronics memory.

Yahoo Finance - Apple is seeking to ensure a physical supply of components due to the ongoing memory shortage.

HOW:

Yahoo Finance - Apple does not require formal U.S. government approval to buy chips from CXMT and YMTC, despite their Pentagon blacklist status.

Yahoo Finance - Tim Cook's lobbying efforts are aimed at securing regulatory assurances to mitigate risks associated with potential sanctions.

(UPDATED July 2, 2026 08:07 UTC)

Apple is currently negotiating to purchase chips from ChangXin Memory Technologies and Yangtze Memory Technologies, both of which are on a Pentagon blacklist, to address a global memory shortage that has caused prices for its products to rise significantly. CEO Tim Cook has reached out to officials in the Trump administration, including Treasury Secretary Scott Bessent, in hopes of securing regulatory assurances that could help mitigate risks tied to potential sanctions. The company aims to secure these chip supplies for its devices sold in China through 2027, as standard DRAM contract prices have surged by an estimated 55% to 60% in early 2026.