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

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

While Apple is technically not prohibited from doing business with CXMT, it could face repercussions from the US government if it doesn’t get the White House’s blessing. The Defense Department cannot can’t sign contracts with any companies in the list or use their products or services through third parties. Apple first approached the commerce department about this a month ago, the Times says, and it’s also talking to its connections in Washington. 

Purchasing memory chips from CXMT could help Apple’s business weather the current shortage in memory chips. The company recently raised its prices for most of its hardware, shortly after Tim Cook warned that it can no longer escape the memory crunch. Apple’s 1TB M5 MacBook Pro now costs $300 more, and even the entry-level MacBook Neo got a $100 price hike. All iPad Pros will set you back $200 more than what it would have cost you just a week ago. At the moment, Apple purchases memory chips from American company Micron and South Korea’s Samsung and SK Hynix. 

The Times says Congress is expected to object if the Trump administration agrees with Apple’s plan. “Apple choosing to partner with a Chinese military company would be a grave mistake,” John Moolenaar, who leads Congressional efforts to investigate China’s geopolitical influence, told the publication.