Apple Is Reportedly Looking To Buy Chips From A US-Blacklisted Chinese Company

Apple is trying to get Trump administration permission to buy memory chips from a blacklisted Chinese company, according to financial Times. In particular, Apple reportedly wants to buy from Chinese memory chip maker CXMT, which was recently added to the Pentagon’s list of 1260H companies. The Defense Department adds companies it believes are linked to the Chinese People’s Liberation Army to a special list.

Although Apple is not technically banned from doing business with CXMT, it could face repercussions from the US government if it does not get the White House’s blessing. The Defense Department cannot sign contracts with any companies on the list or use their products or services through third parties. Apple first contacted the Commerce Department about this a month ago Times Says, and it is also talking to its connections in Washington.

Purchasing memory chips from CXMT could help Apple’s business deal with the current shortage of memory chips. The company recently raised prices on most of its hardware, shortly after Tim Cook warned that it could no longer survive the memory shortage. Apple’s 1TB M5 MacBook Pro now costs $300 more, and even the entry-level MacBook Neo has jumped in price by $100. All iPad Pros will set you back $200 more than a week ago. Currently, Apple buys memory chips from American company Micron and South Korea’s Samsung and SK Hynix.

many times says Congress is expected to object if the Trump administration agrees to Apple’s plan. John Moolenaar, who has led congressional efforts to investigate China’s geopolitical influence, told the publication, “Apple partnering with a Chinese military company would be a serious mistake.”