2 hours ago
900
Apple is reportedly requesting approval from the White House to buy memory chips produced by ChangXin Memory Technologies (CXMT). The Pentagon lists this firm among the military-linked companies from foreign nations, which means that Apple will have quite a hard time closing this deal. Apple needs to make this request because the increasing cost of memory powered by AI has started putting quite a lot of strain on the profitability margins of the company’s hardware offerings.
Not only does Apple’s request show us that the AI revolution has changed the way semiconductors around the globe operate, but it also proves that hyperscale cloud service providers (which, of course, are data centers) compete with each other for getting their hands on scarce amounts of DRAM and NAND flash memory made either in North America or Asia. This implies that large corporations like Apple now have to take into account both the increases in the price of obtaining parts and Washington’s restrictions regarding national security.
According to reports, Apple had reached out to the Commerce Department over a month ago to ask for permission to purchase memory chips from CXMT, which is China’s largest producer of DRAM chips.
CXMT is a “military Chinese company” according to the U.S. Department of Defense, 1260H of the National Defense Authorization Act of June 2026. It is said that an inter-agency committee agreed to add CXMT to the list of companies in the Department of Commerce Entity List, with strict export license requirements for any goods, software, and technology manufactured in the U.S. However, there has been a delay in issuing the new Entity List because of extensive negotiations with China, Cryptopolitan reported previously.
AI demand is reshaping the memory market
Apple’s request is being made in an environment where AI infrastructure investment is generating one of the most vigorous upturns the memory sector has experienced in years. According to TrendForce, DRAM contract prices are expected to increase by 58% to 63% in Q2 2026, and enterprise SSD contract prices will also be on the rise by 48% to 53%, due to the rapid growth of demand from hyperscale AI data centres.
Apple indicated this has affected them too, since they have just increased the prices of iPad and MacBook products, stating they will no longer be able to absorb the increased costs of memory and storage, as reported by the BBC. The iPhone maker has hiked the prices of some laptops and tablets by almost 20%. The price of its basic console will go up by $100 (£75) to $499, while the price of a console with more memory will go up by $150 to $749. New prices will take effect from August.
Unlike logic chips, which are manufactured primarily at Taiwan Semiconductor Manufacturing Company (TSMC), global DRAM is dominated primarily by Samsung Electronics, SK Hynix, and Micron. Hence, there are not many choices available to customers. Because of the significantly greater DRAM and enterprise storage demands of AI servers, DRAM manufacturers shift to produce higher margins on server products and reduce supplies to makers of smartphones or PCs.
Micron states that AI servers have seen a considerable increase in memory capacity to enable the operation of larger language models and data-intensive workloads.
For Apple, gaining access to CXMT would not simply add another supplier—it would diversify procurement in one of the semiconductor industry’s most concentrated supply chains while potentially reducing exposure to rapidly rising contract prices.
A frozen blacklist complicates the picture
The Commerce Department’s Entity List has not been updated since October 2025—the longest gap in more than a decade, according to Philip Luck of the Center for Strategic and International Studies. Reuters separately reported that CXMT, DeepSeek and more than 100 other Chinese companies had completed the interagency review process but have not yet appeared on the published list.
The United States has not put any companies in the “Entity List” since October 2025. According to former Commerce Department official Kevin Kurland, this indicates that trade policy takes precedence over a very important national security tool.
According to Reuters, Undersecretary of Commerce Jeffrey Kessler has sought since late 2025 to avoid adding Chinese firms to the published Entity List while trade negotiations remain ongoing.
CXMT is not currently included in the published Entity List as of now and, unless the Department of Commerce issues an explicit authorization to Apple, it is possible for them to create new supply chains independent of Samsung, SK Hynix and Kioxia without violating any existing export controls.
Apple’s history with Chinese chipmakers
In 2022, Apple examined the option of purchasing NAND flash memory from Yangtze Memory Technologies Co. (YMTC) for use in its iPhones sold in China. However, the company dropped its plans after the Biden administration introduced stricter export controls, and U.S. lawmakers warned that the deal could have security implications for the international technology supply chain. Later on, the Commerce Department added YMTC to the Entity List to show how quickly geopolitical factors can change semiconductor sourcing strategies.
Washington’s actions will be a key indicator of how the administration will manage AI’s competitive advantages against national security restrictions. Should Apple gain approval, this would set a precedent for multiple U.S. technology firms struggling with AI-related memory shortages. More importantly, it will show the difference in outcomes from having the Pentagon classify a company as a military contractor versus the Commerce Department implementing export restrictions while Entity List changes are historically “frozen”. If Apple’s request is denied, Apple and other manufacturers of consumer electronics will remain under pressure to raise memory prices as investments into AI infrastructures become the largest consumer of global DRAM and NAND supply.
The smartest crypto minds already read our newsletter. Want in? Join them.
English (US)