Apple Seeks Trump Administration Approval to Buy Memory Chips from China

The US corporation Apple is negotiating with the Trump administration to purchase RAM chips from China's CXMT (ChangXin Memory Technologies). According to Financial Times, the tech giant has officially approached the US Department of Commerce and influential figures in Washington. This move is seen as a strategic action aimed at curbing a sharp increase in the cost of Apple products. This is reported by Ixbt.com report says.

The issue is that CXMT has been included by the Pentagon on the list of companies linked to the Chinese People's Liberation Army. Consequently, American companies are required to obtain a special government permit to collaborate with this manufacturer. For Apple, this agreement is not only a means of diversifying the supply chain but also a tool for protection against price pressures in the global market.

Sharp Rise in Memory Chip Prices

The main reason for Apple's turn to the Chinese market is the unprecedented growth in the prices of DRAM and NAND memory chips on the global market. Recently, the corporation was forced to raise the retail prices of Mac computers and iPad tablets due to the increase in memory costs. According to WCCF, the price of 12 GB LPDDR5X chips has nearly tripled over the past year.

Analysts predict that if the situation remains unchanged, the share of RAM and storage in the cost of the future iPhone 18 Pro could reach 27 percent. For comparison, in the current iPhone 17 Pro, this figure is only 9 percent. Such a sharp difference could deal a serious blow to the company's net profit or lead to an excessive increase in the final product price.

Strategic Advantage and Competition

CXMT is currently China's fastest-growing memory chip manufacturer. Even if the company cannot fully meet Apple's needs, adding it to the supplier list would give the American corporation a significant advantage in negotiations with other partners. Currently, Apple primarily collaborates with South Korea's Samsung and SK hynix, as well as the American company Micron.

The emergence of a new alternative supplier would allow Apple to demand more discounts and lower prices from its existing partners. However, given the Trump administration's strict protectionist policy toward China and the conditions of trade wars, obtaining such a permit is expected to be difficult.

So far, neither Apple management nor White House representatives have issued an official statement regarding these negotiations. Nevertheless, tech market participants are closely monitoring this decision, as it will clearly have a direct impact on the pricing policy of the entire smartphone and computer industry.