Apple Asks White House For Approval To Buy Chips From Banned Chinese Company

Apple wants permission to buy from a chipmaker the Pentagon has blacklisted, even as it just raised prices on iPads and MacBooks. The two are more connected than they seem.

Apple just made iPads and MacBooks more expensive.

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Key points generated by AI, verified by newsroom

• Apple seeks US approval to buy blacklisted Chinese chips.
• Rising chip costs compel Apple to source from CXMT.
• CXMT, a blacklisted Chinese firm, is a leading chipmaker.
• Move highlights tech firms' challenge balancing costs and rules.

Apple is pushing the Trump administration to allow it to buy memory chips from ChangXin Memory Technologies (CXMT), a Chinese firm that the Pentagon has blacklisted, according to a Financial Times report. The tech giant is reportedly seeking this clearance to ease the financial strain caused by rising memory chip prices. 

The move highlights the tricky position US tech companies find themselves in, as they try to manage costs while staying within the bounds of Washington's national security rules on Chinese chipmakers.

Why Is Apple Seeking Approval From The White House?

According to the report, Apple reached out to the Commerce Department more than a month ago and has also been in touch with other administration officials and allies in Washington to push its case. The goal is to get the green light to source memory chips from CXMT despite the company's blacklisted status.

The White House, Apple, and CXMT did not respond to requests for comment from Reuters outside of business hours, according to the report.

CXMT is China's leading memory chipmaker and was labelled a Chinese military company by the Defence Department during the Biden administration. Last year, an interagency committee approved its addition to the Commerce Department's Entity List, which restricts US companies from shipping goods, software, and technology to listed firms without a license, something that is rarely granted.

What Does This Mean For Apple's Pricing Strategy?

This development comes right after Apple raised prices on its iPad and MacBook lineups on Thursday. The company cited the growing cost of memory and storage chips, driven largely by the AI industry's massive data centre expansion, as the reason it could no longer absorb these expenses on behalf of customers.

The situation reflects a broader challenge for major tech firms: balancing the need for affordable components with strict government rules aimed at limiting China's access to advanced technology. 

As prices for essential chips continue to climb, companies like Apple may find themselves walking a tightrope between economic necessity and regulatory compliance.

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