Apple Keeps China Memory Options Open Despite US Lawmaker Pressure

Apple has confirmed that it continues to evaluate Chinese memory suppliers as rising DRAM and NAND costs put more pressure on its hardware business. The company believes suppliers such as CXMT and YMTC can improve availability, especially as memory prices continue to climb across the industry.

During its latest earnings call, Apple said it paid more for memory in the March quarter than in the December quarter, while costs rose again in the June quarter. Apple also expects memory expenses to increase further during the September quarter, although existing inventory helped reduce some of the impact.

Apple Evaluates CXMT and YMTC

When asked about possible deals with Chinese suppliers, Apple said it continues to review every available source. The company added that Chinese vendors can help improve supply, although the effect on pricing remains unclear.

Financial Times previously reported that Apple had contacted the Trump administration while seeking approval to buy DRAM from CXMT. The Chinese memory company remains on a Pentagon blacklist because of its reported links to China’s military.

Bloomberg’s Mark Gurman also reported that Apple had discussed the issue with the Trump administration to reduce political concerns in Washington. Apple reportedly plans to use any Chinese-made memory only in devices sold inside China.

Lawmakers Demand Answers

A group of US lawmakers has asked Apple to end its plans involving CXMT and YMTC. They also want Apple to confirm by August 21 that it will not buy memory from these companies and disclose any technical information shared during testing.

Apple’s latest comments suggest that it has not changed its position. The company continues to examine Chinese suppliers as it looks for more memory capacity and prepares for higher component costs.