Apple and Micron Clash Over Chinese Memory Chips Amid White House Pressure

Apple is pushing the U.S. government for permission to use memory chips made by Chinese companies in devices sold internationally, aiming to ease a global shortage and cut costs. This request has sparked a heated debate, putting Apple at odds with Micron Technology, the largest American memory chip manufacturer.

The memory chip shortage has sent prices soaring, with costs quadrupling over the past year. AI data centers have driven up demand, snapping up premium memory and leaving less for gadgets like smartphones and cars. Apple, feeling the pinch, wants to source chips from China’s CXMT and YMTC. The idea is simple: use these chips only in products sold outside the U.S., helping ease shortages and ultimately lowering prices for consumers.

Micron’s CEO Sanjay Mehrotra isn’t on board. His warning to the Trump administration is clear: allowing Chinese chips, even for external sales, could weaken America’s chip-making industry. He draws parallels to the decline of U.S. steel and manufacturing sectors, which suffered under Chinese competition. Micron argues that Apple’s push threatens domestic jobs and innovation.

The tension isn’t just about economics. Both CXMT and YMTC are listed by the Pentagon as Chinese military-linked companies, raising national security alarms. This complicates the decision for the Trump administration, which must weigh consumer benefits against protecting the semiconductor sector and security concerns.

Apple accuses Micron of exploiting the shortage for high profits, with gross margins exceeding 80%. They say Micron prioritizes AI data centers over consumer products, worsening supply issues. Micron counters that price increases reflect broad cost pressures and has committed to a massive $250 billion investment to boost U.S. chip manufacturing capacity.

This dispute puts Apple in a tough spot, caught between reducing production costs and navigating geopolitical risks. For the Trump administration, the choice comes down to balancing lower prices for American consumers with safeguarding a critical industry and national security.