Donald Trump’s administration is preparing to allow Apple to buy memory from Chinese companies Changxin Memory and Yangtze Memory ahead of the US president’s meeting with Xi Jinping in September. In Washington, such concessions have been viewed as a possible diplomatic gift to Beijing.
Apple is already testing DRAM from Changxin Storage and NAND from Yangtze Storage and sees them as potential components of its supply chain. The company is also trying to get a license to work with Changxin Storage, which is on a U.S. blacklist for alleged ties to the People’s Liberation Army. Meanwhile, Chinese memory will be used exclusively in devices sold in China.
According to mobile chip expert sources, the US government may make a formal decision after a private meeting between Trump and Xi Jinping in September. The prospect has met with little enthusiasm in Congress, however: A group of U.S. lawmakers is demanding that Apple abandon plans to purchase memory in China and disclose technical information the company can share with Changxin Memory and Yangtze Memory.
Even if Washington gives the green light, there’s no guarantee of a deal. Changxin Storage’s production capacity is still limited and may not be able to cope with apple production. Additionally, the company allegedly refused to cut prices at Apple’s request and gained additional leverage at the request of Huawei and Xiaomi. Therefore, negotiations may be more beneficial to Beijing than Apple itself.
