US tells Apple to find alternative to Chinese memory chips

US Commerce Secretary Howard Lutnick has told Apple to stop sourcing memory chips from China and look for alternatives, according to the Wall Street Journal. Lutnick said the Trump administration is not in favour of American companies using Chinese memory. Apple has been testing memory chips from Chinese firms CXMT and Yangtze Memory Technologies amid a global shortage that has pushed up prices, driven partly by demand from AI data centres.

The Times of India reports that Apple's chief operating officer, Sabih Khan, declined to confirm the tests but said the company must look at all options. Idaho-based Micron Technology has urged the administration to block Apple from using Chinese chips, arguing it could hurt domestic production. Senators from New York, Indiana and Idaho also wrote to Apple CEO Tim Cook in July urging the company not to work with Chinese memory makers.

Lutnick said the government will relentlessly push Apple to move more of its supply chain to the US. Apple has already committed to buying US-made chips and assembling the Mac Mini in Texas. Most of Apple's supply chain remains in Asia, though it has expanded iPhone assembly in India.