Apple is in talks to buy memory from Chinese semiconductor companies ChangXin Memory Technologies Co. (CXMT) and Yangtze Memory Technologies Co. (YMTC), reports Bloomberg (a subscription is required to read the article.
It’s been previously reported by The Financial Times that Apple has asked the Trump administration for permission to buy memory chips from CXMT. The problem is that the Chinese company is on the Pentagon’s 1260H list of companies with alleged connections to the Chinese military.
While Apple isn’t barred from using CXMT as a supplier, the iPhone maker is seeking guarantees CXMT won’t be added to the US’s so-called Entity List that would impose stiff licensing restrictions as Washington and Beijing play hardball over trade and rare earths, the FT said.
The Pentagon, which had previously removed CXMT and Yangtze Memory Technologies Co. from the 1260H list, restored the two memory chipmakers in its newest version. While the list carries few immediate legal repercussions, it’s widely considered a red flag to investors that can precede more punitive trade restrictions, notes Fortune.
Making things such as complicated is that YMCT is also on the naughty list.
Bloomberg says Apple CEO Tim Cook has spoken with Trump administration officials, including Treasury Secretary Scott Bessent. The tech giant has purportedly proposed using the chips sourced from the companies in devices meant for the Chinese market, freeing up chips from other suppliers for the U.S.
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