Apple Seeks US Approval for Blacklisted Chinese Chips Amid 2026 AI Boom

Apple is seeking US approval to buy chips from a blacklisted Chinese company as the global memory supply shortage continues to impact the tech industry, with memory prices quadrupling in recent months.

Background

The company in question, ChangXin Memory Technologies (CXMT), is China’s largest DRAM manufacturer and has been linked to the Chinese military. 6 people familiar with the matter have confirmed that Apple has been lobbying Commerce Department officials and other members of the Trump administration for approval to buy memory chips from CXMT, according to the Financial Times.

Impact on Apple Products

Apple has already raised iPad and MacBook prices, citing the high cost of memory and storage chips driven by the AI industry’s data center buildout. The starting price of the iPad has increased by 15%, while the MacBook price has risen by 10%. The move does not currently affect Apple’s cash cow, the iPhone, but price hikes could be next.

“The AI industry’s data center buildout has led to a significant increase in demand for memory and storage chips, resulting in higher prices for these components,” said a spokesperson for Apple.

What the Sceptics Say

Some critics argue that Apple’s decision to seek approval to buy chips from a blacklisted Chinese company is a national security risk. They point out that CXMT has been linked to the Chinese military and that the company’s chips could potentially be used for malicious purposes.

What This Means for the Industry

The news has significant implications for the tech industry, particularly for companies like Google, Amazon, and Microsoft, which are all heavily invested in AI and machine learning. As the demand for memory and storage chips continues to rise, companies may need to explore alternative suppliers or risk facing significant price increases. Over the next 6-12 months, we can expect to see a 20-30% increase in the price of memory chips, according to market research firm, IC Insights.

Key Takeaways

1. Engineers: Be prepared for potential price increases in memory and storage chips, and explore alternative suppliers to mitigate the impact on your company’s bottom line.
2. Investors: Keep a close eye on the memory and storage chip market, as price fluctuations could have a significant impact on the tech industry as a whole.
3. Business Leaders: Diversify your supply chain to reduce reliance on any one supplier, and consider investing in alternative technologies to mitigate the impact of price increases.
4. Consumers: Be prepared for potential price increases in tech products, particularly those that rely heavily on memory and storage chips, such as smartphones and laptops.

Sources

• Engadget: Apple is reportedly looking to buy chips from a US-blacklisted Chinese company
• Engadget: Apple executive in charge of Vision Pro is reportedly leaving for OpenAI
• The Next Web: Apple wants US approval to buy chips from CXMT as memory prices quadruple
• The Guardian Tech: Apple raises iPad and MacBook prices, blaming cost of chips amid AI boom
• 9to5Mac: Apple asks Trump admin to approve Chinese RAM after product price increases

As the memory and storage chip market continues to evolve, engineers should prioritize research and development of alternative technologies, investors should diversify their portfolios to mitigate risk, and business leaders should develop strategic plans to address potential price increases.