US lawmakers ask Apple to drop plans to source chips from Chinese suppliers

New Delhi, July 30 (IANS) A bipartisan group of US lawmakers has urged Apple Inc. to abandon plans to source memory chips from Chinese semiconductor companies CXMT Corp. and Yangtze Memory Technologies Co. (YMTC), warning that such a move could create long-term national security risks and deepen the iPhone maker’s reliance on firms linked to Beijing, as per multiple reports.

In a letter addressed to Apple CEO Tim Cook, the senators asked the company not to use memory chips from the two Chinese suppliers, even in devices intended exclusively for the Chinese market.

The lawmakers — led by Republican Senator Jim Banks and Democratic Senator Chuck Schumer — noted that both CXMT and YMTC feature on the Pentagon’s updated list of Chinese entities believed to support China’s military, the reports said.

“This short-sighted move would be a mistake,” the senators wrote.

They further warned that it could make the world’s most valuable consumer electronics company dependent on suppliers designated by the US government as Chinese military companies.

Apple has reportedly been exploring purchases from the two firms amid a global memory chip shortage that has driven up prices due to strong demand from artificial intelligence hardware makers, including Nvidia.

In addition, Apple raised prices across its Mac, iPad, home devices and Vision Pro product lines, citing higher memory costs in June.

The senators argued that even if Chinese memory chips were initially limited to products sold in China, they could eventually be deployed globally through procurement decisions.

They also questioned whether sourcing from Chinese suppliers would significantly lower costs, citing analysis that CXMT’s pricing is sometimes higher than competing products.

Moreover, the letter asked Apple to commit by August 21 that it will not incorporate CXMT or YMTC memory chips into its products.

It also sought details on Apple’s engagement with the two companies, including any sharing of technical information and whether the company has sought priority allocations from US or South Korean memory suppliers.

However, reports claim that Apple did not respond to the lawmakers’ letter immediately.

–IANS

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