Daijiworld Media Network – Washington

Washington, Jun 27: Apple has approached the US administration seeking approval to purchase memory chips from Chinese semiconductor company ChangXin Memory Technologies (CXMT), a firm placed under scrutiny by the Pentagon, according to a report.

The iPhone maker has reportedly lobbied the Trump administration for clearance as it faces increasing pressure from rising memory chip prices, the Financial Times reported, citing sources.

Apple, the White House and CXMT have not issued any official comments on the matter.

The move highlights the challenges faced by major US technology companies as they attempt to manage rising semiconductor costs while complying with Washington’s restrictions on Chinese technology firms over national security concerns.

According to the report, Apple approached the US Commerce Department more than a month ago and has also engaged with other administration officials and political allies in Washington regarding the matter.

CXMT, considered China’s leading memory chip manufacturer, was designated as a Chinese military-linked company by the US Department of Defense during the Biden administration. The company was also approved by an interagency panel last year for inclusion on the US Commerce Department’s Entity List.

Companies on the Entity List require special licences to receive US goods, software or technology, with such approvals often difficult to obtain.

Apple’s request comes amid a sharp rise in memory and storage chip prices, driven largely by increased demand from the artificial intelligence industry’s expanding data centre infrastructure.

The company recently increased prices of iPads and MacBooks, citing higher memory and storage costs, stating that it could no longer absorb the impact of rising component prices.