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The US government urged Apple to find alternatives to Chinese memory chip suppliers. It is adding pressure on the iPhone maker to shift more of its supply chain towards domestic manufacturing.
US Commerce Secretary Howard Lutnick said the Trump administration does not support Apple buying memory chips from Chinese manufacturers. He said Apple should explore other options as a global memory shortage drives up component prices.
Apple has reportedly been testing memory chips from Chinese companies CXMT and Yangtze Memory Technologies. Apple Chief Operating Officer Sabih Khan did not confirm the testing. He said the scale of the shortage requires the company to consider available options.
Memory demand has risen sharply as technology companies build AI data centres. The resulting supply pressure has increased costs for electronics makers and created a challenge for companies seeking additional chip capacity.
The dispute adds to pressure on Apple to expand manufacturing in the US. Lutnick said the administration would continue pushing the company to bring more parts of its supply chain into the country.
Apple has already announced major US manufacturing commitments. These include spending tens of billions of dollars on US-made chips and adding a Mac Mini assembly line in Texas. The company has also committed to making iPhone and Apple Watch cover glass in the US.
The administration has also reached an arrangement for Intel to manufacture some chips for Apple. Apple has been expanding iPhone assembly in India, while much of its wider supply chain is still based across Asia.
Apple's sourcing decision comes as US officials seek to strengthen domestic semiconductor production. Idaho-based Micron Technology has opposed Apple using Chinese memory chips and has urged the administration to protect US memory manufacturing.
Several US senators also wrote to Apple CEO Tim Cook in July, asking the company not to work with Chinese memory producers. The White House said reshoring semiconductor production is a priority tied to investment, jobs and national security.
For Apple, the issue highlights the difficulty of balancing supply needs with Washington's push for domestic production. Expanding semiconductor capacity can take more than a year, limiting how quickly new US supply can reach the market.
Also Read: Apple's China Memory Chips Plan Runs Into US Resistance
