Apple lobbies US Govt for permission to buy chips from banned Chinese firm

In a bid to counter the soaring prices of memory chips in the global market, tech giant Apple is seeking permission to purchase chips from a sanctioned Chinese firm. The company has reportedly begun lobbying the United States government for a special license to secure this alternative supply chain.

According to a recent report by the British daily Financial Times, Apple is interested in procuring memory chips from ChangXin Memory Technologies (CXMT), one of China's leading memory chip manufacturers. However, because the firm is currently on the US trade and national security blacklist, direct procurement is prohibited without explicit authorization from the US government.

Citing multiple anonymous sources, the report stated that a significant spike in global memory chip prices has forced Apple to scout for alternative suppliers to manage escalating production expenditures. Consequently, the company has been holding discussions in Washington to secure a special waiver.

It is understood that Apple approached the US Department of Commerce regarding the matter approximately one month ago and has engaged in talks with relevant government officials and policymakers. When reached by Reuters, representatives from the White House, Apple, and CXMT all declined to comment officially.

The memory chip market remains highly volatile due to supply chain disruptions and ongoing geopolitical tensions in the semiconductor sector. Continuous US sanctions targeting Chinese tech corporations have introduced fresh operational challenges for major American tech companies.

Notably, the US Department of Defense (Pentagon) previously designated CXMT as a company linked to the Chinese military. Following recommendations from an inter-agency committee, the firm was subsequently added to the US Department of Commerce’s Entity List.

Under US law, obtaining a special license is mandatory to trade technology, software, or related components with any entity on this blacklist. However, given national security considerations, such license applications are overwhelmingly rejected.

The burden of increasing production costs has already started trickling down to consumers. Apple recently raised the retail prices of its iPads and Macbooks. The company stated that it can no longer entirely absorb the price hikes of essential components, including memory chips, forcing it to adjust the pricing of certain products.

Industry analysts suggest that if Apple’s initiative secures approval, it could have far-reaching implications—not just for the company’s supply chain, but also for US-China tech relations and the broader global semiconductor industry.