US tells Apple to stop sourcing memory chips from China

The Trump administration has told Apple to find alternatives to Chinese memory chip suppliers, US Commerce Secretary Howard Lutnick said after touring an Apple facility in Houston. Lutnick said the administration is "not in favour" of Apple buying memory chips from China and has communicated this to Apple "plainly." Apple has been testing chips from Chinese firms CXMT and Yangtze Memory Technologies amid a global shortage that has pushed up memory prices.

The pressure adds to tensions as Apple balances US investments with an Asia-centric supply chain. US-based Micron Technology has urged the administration to block Apple from using Chinese chips, arguing it could hurt domestic production. Several US senators also wrote to Apple CEO Tim Cook in July urging the company to avoid Chinese memory makers. Apple's chief operating officer Sabih Khan declined to confirm the Chinese chip tests but said "we have to look at all options" due to the shortage.

Lutnick said the government will push Apple "relentlessly" to move more supply chains to the US, adding that Apple can build supply chains based on advanced manufacturing. The administration has secured commitments from Apple, including spending tens of billions on US-made chips and assembling Mac Minis in Texas. Expanding semiconductor production takes more than a year, the report added.