Apple is lobbying the Trump administration for permission to buy memory chips from ChangXin Memory Technologies, a Chinese manufacturer the Pentagon blacklisted weeks earlier. The push comes as AI data centers drain the global memory supply that Apple needs for its Macs, iPads, and iPhones, and it has already raised prices on some of those products.
Apple is pushing the Trump administration for permission to buy memory chips from ChangXin Memory Technologies (CXMT), a Chinese manufacturer the Pentagon blacklisted weeks earlier. The company is engaging directly with Commerce Department and Treasury officials, seeking assurances that CXMT won't face stricter regulations that would cut off a potential lifeline for its supply chain.
The Pentagon added CXMT to its Section 1260H list of Chinese military-linked companies on June 8, 2026. That designation hasn't yet banned private commercial sales, but it puts the company squarely in Washington's crosshairs.
Price increases already hitting Macs and iPads
Around June 25, Apple rolled out price increases across Macs and iPads, including a $100 bump on the MacBook Neo. During a mid-June discussion with the Wall Street Journal, CEO Tim Cook called the memory price increases "unsustainable".
The cause isn't a manufacturing failure or a natural disaster. It's demand reallocation. AI data centers are consuming DRAM and memory components at a pace that has left consumer electronics makers scrambling for scraps, since the same chips that go into a MacBook also go into the servers training large language models.
Lawmakers and chipmakers push back
However, Apple's CXMT plan faces stiff opposition on Capitol Hill. A bipartisan group of lawmakers, including Rep. John Moolenaar, has publicly pushed back against the initiative, arguing it would deepen US tech dependence on China. Section 1260H exists specifically to flag companies with alleged ties to the Chinese military, so greenlighting Apple to buy from one of those companies would set a politically uncomfortable precedent.
US semiconductor firms have their own reasons to oppose the move. Domestic memory producers like Micron have invested billions in expanding American chip manufacturing, partly at the government's encouragement through CHIPS Act subsidies, and letting Apple turn to a cheaper Chinese alternative would undermine the economic logic behind those investments. Reports from late June documented Apple's active engagement with multiple federal agencies, suggesting a coordinated campaign rather than a casual inquiry.
Stakes extend beyond Apple
The broader dynamic extends well beyond Apple. Medical device makers and other electronics companies are also seeking government intervention as memory chips get pulled toward data center buildouts.
For Apple, the stakes are significant. The company sold more than $400 billion worth of products and services in its most recent fiscal year, and hardware remains the majority of that revenue. Sustained memory price inflation compresses margins on every Mac, iPad, and iPhone it ships.
Source: Crypto Briefing
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