US senators have urged Apple to abandon plans to source memory chips from Chinese suppliers ChangXin Memory Technologies and Yangtze Memory Technologies Co. The bipartisan letter, led by Senator Jim Banks and Senate Democratic leader Chuck Schumer, asks Apple to confirm by August 21 that it will not use components made by either supplier.
The lawmakers' concerns center on the suppliers' alleged links to China's government and defense industry. YMTC remains on the Commerce Department's Entity List, while CXMT is not currently listed.
Apple had considered using YMTC flash memory in some iPhones in 2022 but dropped the plans after lawmakers raised national security concerns. The company now faces pressure to rule out using Chinese memory chips altogether, which could leave it more dependent on suppliers like Samsung, SK Hynix, and Micron.
Supply Chain Implications
The dispute comes as AI data centers absorb a growing share of global memory production, reducing supplies available for smartphones and other consumer products. Blocking Chinese suppliers could weaken Apple's ability to negotiate prices and lead to higher component costs.
Market Impact
Apple shares closed at $338.19 on July 29, down 0.56%, and extended the decline during July 30 trading. The company's quarterly earnings report is upcoming, and the August 21 response will show whether Apple accepts the senators' demand or continues evaluating Chinese memory for locally sold devices.
