2 weeks ago
Trump administration pushes Apple to avoid Chinese memory chips
Apple is a big company that makes iPhones and other gadgets.
Computers need special parts called memory chips to remember things.
Some of these chips are made in China.
Right now, there is a shortage, which means there are not enough chips for everyone.
So Apple started testing chips made by Chinese companies.
The United States government told Apple not to buy chips from these Chinese companies.
The government is worried about trading with China and wants Apple to make things in America instead.
Apple is thinking about what to do and is promising to make more products in the United States.
Apple is also planning to build new iPhone factories in India.
The Trump administration told Apple it does not want the company buying memory chips from Chinese manufacturers, Commerce Secretary Howard Lutnick said.
Apple has been testing memory chips made by Chinese companies CXMT and Yangtze Memory Technologies, according to The Wall Street Journal.
Apple COO Sabih Khan declined to confirm the testing and said the supply shortage means Apple must look at all options.
US rules require American companies to obtain a licence before sharing product information with CXMT and YMTC.
Apple has promised major US investments under tariff pressure, including an Intel manufacturing deal and domestic cover glass production, while also planning iPhone assembly plants in India.
- Who
- President Donald Trump's administration, including Commerce Secretary Howard Lutnick, and Apple, whose COO Sabih Khan addressed the matter.
- What
- The administration urged Apple to avoid buying memory chips from Chinese manufacturers and to move more of its supply chain to the United States.
- Where
- The United States and China, with new iPhone assembly plants also planned in India.
- When
- During the current memory chip shortage and amid ongoing tariff pressure from the Trump administration; no specific date was given.
- Why
- US trade tensions with China, US rules requiring licences to share product information with Chinese chipmakers, and the administration's priority on reshoring semiconductor manufacturing.
Trump Administration
Apple / Supply-Chain Reality
Chinese memory chips
Trump Administration
The administration is not in favour of American companies using Chinese memory chips and says there must be other solutions to the memory issue.
Apple / Supply-Chain Reality
Apple has been testing chips from CXMT and Yangtze Memory Technologies and says the supply shortage means it has to look at all options, including standard Chinese components.
Where manufacturing should happen
Trump Administration
The administration wants Apple to bring significant portions of its business home and build a supply chain on advanced manufacturing in the US.
Apple / Supply-Chain Reality
Apple built its supply chain on low-cost labour, most of it remains in Asia, and it is also working with contract manufacturers to build new iPhone assembly plants in India.
Tariffs and investment
Trump Administration
The administration uses the threat of higher tariffs to encourage companies to move supply chains to the United States.
Apple / Supply-Chain Reality
Apple has promised major domestic investments while seeking tariff relief from President Trump, but has provided limited details on how much will go toward new manufacturing.
Key facts
- Commerce Secretary
- Howard Lutnick
- Apple COO
- Sabih Khan
- Chinese chipmakers tested by Apple
- CXMT and Yangtze Memory Technologies (YMTC)
- Administration position
- Opposed to American companies using Chinese memory chips; wants alternatives
- US licensing rule
- Required before sharing product information with CXMT and YMTC
- US manufacturing deals
- Intel to make some Apple chips; Apple to produce all iPhone and Apple Watch cover glass in the US
- Current Apple supply chain
- Mostly in Asia
- India plans
- New iPhone assembly plants with contract manufacturers
Quotes
Howard Lutnick
U.S. Commerce Secretary
“The Trump administration is not in favour of that, but there are other solutions to the memory issue, and it’s not good for American companies to use Chinese memory.”
wionews.com
Sources
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