Could Apple Source Memory/NAND from China Following the Trump-Xi Meeting?

TECH NEWS – After the Chinese leader visits the White House in September, Apple may reportedly purchase memory from CXMT and YMTC.

 

It seems the Trump administration is leveraging the potential business relationship between Apple and the Chinese memory giants as an incentive ahead of Xi Jinping’s visit, paving the way for what Washington views as a generous gesture toward China. This move would also alleviate Apple’s supply chain issues. Apple is reportedly testing CXMT’s DRAM products and YMTC’s NAND modules. This suggests that Chinese memory manufacturers will likely become part of Apple’s extensive supply chain in the near future.

According to a recent report by the Financial Times, Apple has even lobbied the Trump administration for permission to purchase DRAM from CXMT, which remains on the Pentagon’s blacklist due to its ties to the Chinese People’s Liberation Army. Bloomberg editor Mark Gurman revealed that Apple is working with the Trump administration to minimize backlash in Washington if Apple ultimately sources memory from CXMT and YMTC. Regardless of which Chinese suppliers Apple sources memory from, it will use the memory exclusively in products sold in China. Accordingly, in its most recent earnings report, Apple gave the clearest indication yet that it is favoring Chinese memory manufacturers. “We’re continuing to evaluate this in terms of the sources of supply. It would help us on the supply side and perhaps the pricing side. It’s unclear on the pricing side, but it could help on the supply side. We’re evaluating all options.”

According to a Weibo account called “Mobile Chip Expert,” the Trump administration appears to be preparing to grant Apple permission to purchase memory and storage chips from the Chinese companies CXMT and YMTC. The official announcement is expected after the one-on-one meeting between Trump and Xi in September. It remains to be seen whether this “gift” (as the Weibo account calls it) will materialize. Meanwhile, the back-and-forth over the issue continues in Washington. A group of U.S. lawmakers recently called on Apple to abandon its plans to use memory chips sourced from China. They demanded that Apple commit by August 21 to not pursuing this course of action. The lawmakers also requested that the iPhone manufacturer fully disclose any technical information it may have shared with CXMT and YMTC.

As reported in early August, it is unclear if CXMT will be able to meet Apple’s DRAM needs in the near future, even if the Trump administration were to approve the commercial relationship. This is particularly true given the Chinese memory manufacturer’s limited capacity. Interestingly, CXMT has reportedly refused to offer Apple any discounts should the two companies enter into a business relationship.

Source: WCCFTech

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