Apple is testing DRAM chips from CXMT, a Chinese memory supplier on the Pentagon’s blacklist, marking a significant escalation in the iPhone maker’s effort to secure supply amid a global shortage. The company is conducting technical validation of CXMT’s chips specifically for devices sold in China, according to Financial Times, while simultaneously lobbying the Trump administration for clearance to use the supplier. CEO Tim Cook has directly engaged with administration officials, including Treasury Secretary Scott Bessent, to push for approval.
Both CXMT and YMTC, another Chinese memory producer, sit on the Department of Defense’s 1260H list of companies suspected of ties to the People’s Liberation Army. Apple previously attempted to source memory from YMTC in 2022, but those discussions ended after congressional backlash. The current push differs in urgency and scope: Apple is no longer fighting elevated prices. The company now faces a critical supply gap expected to persist well into 2027 as chipmakers prioritize production for AI servers, leaving consumer device manufacturers with insufficient capacity.
Standard DRAM contract prices have surged an estimated 55 to 60 percent in early 2026. Apple has proposed a narrow political solution: allow the company to use CXMT and YMTC chips in China-market devices only, freeing chips from other suppliers for the U.S. Market. The request also includes a commitment from the Trump administration that CXMT will not be added to the Commerce Department’s Entity List, which would effectively sever the supply chain. Some administration officials oppose the arrangement, making approval uncertain.
In late June Apple raised prices on Macs, iPads, and other devices. Days earlier, Tim Cook told the Wall Street Journal that the situation had become unsustainable and price increases were unavoidable. CXMT has become impossible to ignore: the company is now the world’s fourth-largest DRAM producer behind Samsung, SK Hynix, and Micron, controlling roughly 11 percent of global DRAM production, with that share expected to climb to 15 percent by 2028 as new fabrication lines come online.
Discussions between Apple and the chipmakers are ongoing, though no deal has been finalized. Apple’s testing phase suggests the company is preparing fallback options should the lobbying effort stall. For a company that has spent decades isolating its supply chains from geopolitical risk, this shift is stark: Apple is now negotiating directly with Washington over sanctioned suppliers, betting that a fragmented supply strategy beats a supply shortfall.
