Apple Lobbies White House for Chinese Memory Chips as Micron Pushes Back

Apple is pushing the White House to approve the use of memory chips made in China, a move that pits the tech giant against domestic supplier Micron. This lobbying effort matters because it could reshape how Apple sources critical components for its devices and potentially influence future pricing strategies for consumers. The dispute underscores the conflict between reducing costs and addressing national security risks within the semiconductor supply chain.

Apple pushes for Chinese memory chips while Micron opposes the move

The conflict centers on Apple's interest in sourcing DRAM chips from Chinese manufacturer CXMT. Micron CEO Sanjay Mehrotra is actively opposing this plan, arguing that allowing Chinese chips into the US market would harm American industrial growth. He compares the potential impact to the challenges faced by the US steel industry, suggesting that such a shift would undermine domestic manufacturing capabilities.

Apple previously tested CXMT DRAM chips as part of a broader strategy to diversify its supply chain. These tests occurred before negotiations with major suppliers Samsung, SK Hynix, and Micron, indicating a long-term interest in alternative sources. The company argues that sourcing from CXMT could help reduce prices for American consumers, although reports suggest these savings might primarily benefit products sold in China rather than the US market.

Reports indicate that the relationship between Apple and Micron has deteriorated due to Apple's low-cost procurement strategy. This 'bad blood' stems from years of Apple seeking cheaper components, which Micron views as a threat to its market position. Apple has recently raised prices on its gadget lineups due to memory industry turmoil and increased demand for AI chips, adding complexity to the current standoff.

The White House is now weighing Apple's lobbying efforts against Micron's objections, with decisions likely to impact future chip sourcing policies. Apple's potential acquisition of Chinese memory chips may impact global semiconductor trade patterns and its relationships with suppliers. This situation remains fluid as both companies continue to advocate for their respective positions in the ongoing dispute.