The U.S. and Apple’s Chinese Chip Purchase: A Political Objection
The U.S. government, through Commerce Secretary Howard Lutnick, has advised Apple not to buy Chinese memory chips, citing political concerns rather than legal restrictions. However, there is currently no rule preventing Apple from acquiring these chips.
Lutnick expressed the administration’s displeasure during an interview with The Wall Street Journal, stating that they prefer American companies not relying on Chinese memory suppliers. He emphasized this point by replying with a simple "Plainly" when asked if he had communicated this directly to Apple.
Key Points:
- Two Chinese manufacturers, Yangtze Memory Technologies (YMTC) and CXMT, are involved, with YMTC on the Commerce Department’s Entity List and CXMT not designated as a military company.
- The U.S. rules require a license for sharing product information with these firms, but Apple can buy off-the-shelf memory and negotiate prices without such a license.
- Apple’s COO, Sabih Khan, confirmed the company is exploring alternatives due to the chip shortage but emphasized that customization of memory is minimal.
- Apple sought assurance from the Commerce Department regarding CXMT in June, but their request was denied publicly.
- Competitors like HP and Acer have already incorporated CXMT memory into products sold outside the U.S. without restrictions.
- A bipartisan Senate letter to Tim Cook, dated 21 August, urged Apple to exclude these components, raising concerns about dependency on a designated Chinese military company.
As of now, Apple has remained silent on its future plans regarding these chip purchases, with a critical deadline looming.