Apple is lobbying the Trump administration for permission to purchase memory chips from CXMT and YMTC, two Chinese companies on the Pentagon's blacklist. The Cupertino firm hopes to use these components exclusively in iPhones destined for the Chinese market, a concession meant to address national security concerns.
This is not Apple's first attempt at such an exemption. It made a similar request to the Biden administration back in 2022, which was denied despite Apple's pledge to restrict the chips to China-only devices. The current effort faces an uphill battle given heightened trade tensions.
Apple has argued that sourcing locally would streamline its supply chain and reduce costs for its biggest overseas market. However, Pentagon officials remain wary of granting any waiver to entities tied to China's military-industrial base, citing risks of technology diversion.
The outcome could reshape Apple's manufacturing strategy in China, where it already assembles most of its iPhones. A denial may force the company to rely on alternative suppliers, potentially increasing costs or delaying production timelines for Chinese-specific models.
Critics counter that Apple's request is a calculated move to weaken US export controls, setting a precedent that other tech giants might exploit. Any approval would require stringent monitoring to ensure compliance with the blacklist terms.