The latest
House China committee chair John Moolenaar and Democratic lawmaker George Whitesides have called on the Trump administration to block purchases of memory chips from Chinese companies subject to U.S. restrictions. They argue that allowing such sales would create unacceptable risks for national security, economic resilience and critical supply chains.
In a letter to commerce secretary Howard Lutnick, the lawmakers urged Washington to add CXMT to the Entity List and tighten restrictions on YMTC, which is already listed. They also want U.S. companies barred from buying chips made by any group designated as a Chinese military company or placed on the Commerce Department’s trade blacklist.
The intervention follows reports that Apple has been lobbying for permission to buy chips from CXMT. The Pentagon added the company to its list of Chinese military-linked businesses this year. The designation does not automatically prohibit purchases, but it raises the political stakes for the iPhone maker.
Details
- Security concerns: The lawmakers say purchases from Chinese memory manufacturers could help finance the development of dual-use technologies linked to the People’s Liberation Army.
- Allied response: They want Washington to coordinate with Japan, South Korea and the European Union to prevent CXMT and YMTC from gaining access to allied supply chains.
- Existing restrictions: YMTC is already subject to U.S. export controls, while CXMT has yet to be added to the Commerce Department’s Entity List.
- Trade calculations: The Trump administration previously considered adding CXMT to the list but backed away amid concerns that the move could disrupt trade negotiations with Beijing.
- Core products: CXMT specialises in DRAM chips, while YMTC produces NAND memory used in devices ranging from smartphones to data centres.
- Supply crunch: Rapid investment in AI infrastructure has intensified a global shortage of memory chips and increased the appeal of Chinese suppliers.
- Global rivals: Micron, Samsung and SK Hynix have pledged hundreds of billions of dollars in new production investment.
- Market impact: Analysts expect the rapid expansion of China’s memory manufacturers to begin exerting meaningful pressure on global prices within the next few years.
What to watch
The industry is awaiting the administration’s decision on whether to add CXMT to the Entity List and approve Apple’s request to source its chips. Washington’s response could determine whether Chinese manufacturers use the supply shortage to establish a foothold in Western technology supply chains.
