Apple reportedly wants permission to buy memory chips from Chinese manufacturer ChangXin Memory Technologies, or CXMT.
The company aims to reduce rising component costs affecting several devices. Consequently, lower production costs could ease pressure on future iPhone prices.
According to the Financial Times, Apple requested approval from the Trump administration. The company hopes the move will offset increasing memory chip prices.
Apple Pushes for Government Approval
Apple reportedly contacted the US Commerce Department more than a month ago. It also approached administration officials and key allies during its lobbying efforts.
However, the White House, Apple, and CXMT declined to comment publicly. Reuters requested statements outside regular business hours.
CXMT remains China’s largest memory chip manufacturer. Previously, the Pentagon placed the company on a blacklist over alleged military connections.
Furthermore, US authorities added CXMT to the Commerce Department’s Entity List. Therefore, American companies require government licenses before supplying technology or conducting certain business.
Rising Memory Costs Challenge Technology Companies
Apple’s request highlights growing pressure from rising global memory prices. Meanwhile, US restrictions continue limiting business with Chinese chipmakers.
Strong demand from artificial intelligence companies has increased memory chip prices. Additionally, expanding data centers continue driving storage component costs higher.
Using CXMT as a supplier could reduce Apple’s manufacturing expenses. As a result, future iPhone prices could remain more competitive.
Recently, Apple increased iPad and MacBook prices because of higher memory costs. The company said it could no longer absorb rising component expenses without price adjustments.
