Apple Seeks Exception to Source RAM Chips from Blacklisted Chinese Supplier

In a bid to ease supply chain pressures, Apple is seeking permission from the Trump administration to purchase RAM chips from CXMT, a Chinese company blacklisted by the Pentagon due to its ties to the People's Liberation Army. According to the Financial Times, the move is driven by skyrocketing RAM and storage prices, which have led Apple to increase prices on nearly all its products. While Apple is not legally barred from buying chips from CXMT, doing so would pose significant reputational risks due to the company's links to the Chinese military. CXMT was previously proposed for addition to the Commerce Department's 'Entity List', which could have led to export controls.

However, the White House held off on the decision amid trade negotiations with China. The outcome of Apple's request is uncertain, and any approval from the administration could face backlash. Republican Chair of the House China committee, John Moolenaar, warned that partnering with a Chinese military company would be a 'grave mistake', citing concerns over dependence on China for critical supply chains. Apple's efforts to build relationships with the Trump administration, led by CEO Tim Cook, may influence the decision.

The company's move highlights the complexities of navigating global supply chains while addressing national security concerns.

Source: The Verge