US commerce chief tells Apple to steer clear of Chinese memory chips

Apple's push to diversify its memory chip supply has run into direct opposition from Washington. Commerce Secretary Howard Lutnick has told Apple the Trump administration does not want the company buying memory chips from Chinese suppliers, even as Apple appears to be weighing the move regardless, according to The Wall Street Journal.

Apple has for several months tried to get clearance to procure memory from two Chinese companies, ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), amid efforts to reduce the global shortage.

However, this move has faced opposition across party lines in Washington. YMTC is listed on the US Department of Commerce's Entity List, while the Pentagon has identified both firms as Chinese military companies due to their suspected military connections.

Apple usually requires customised components, making such an endeavour a bit difficult owing to the US export control laws that prohibit the disclosure of product specifications to these firms.

But Apple COO Sabih Khan told the Journal that memory chips require little customisation compared with other iPhone parts, leaving open the possibility that Apple could use off-the-shelf Chinese chips without needing an export licence.

Lutnick's comments came a day after he joined Apple CEO Tim Cook at the company's new Advanced Manufacturing Center in Houston, alongside Senator Ted Cruz and other officials.

Asked whether he had relayed Washington's opposition directly to Apple, Lutnick said he had done so "plainly", adding there needs to be "other solutions to the memory issue" that don't involve American companies relying on Chinese suppliers.

The Houston facility is part of Apple's $600 billion US manufacturing commitment, which is widely perceived as an effort to maintain a positive relationship with the administration.

Cook has said Apple is "evaluating all options" on memory sourcing, and reports indicate the company has already tested CXMT chips and explored a deal with YMTC, prompting a group of senators to demand Apple abandon the plan entirely.