Apple Inc. is in negotiations to purchase memory chips from Chinese semiconductor makers ChangXin Memory Technologies and Yangtze Memory Technologies, both listed by the U.S. Pentagon as supporting Beijing’s military development, according to Bloomberg sources. The chips would be used in Apple devices sold in China, and no U.S. approval is formally required. However, the prospective deals have drawn strong opposition from several U.S. lawmakers and some Trump administration officials, who cite national security and supply chain risks. Apple CEO Tim Cook has lobbied senior administration figures to limit political fallout amid a global memory chip shortage and higher device prices.
Prepared by Christopher Adams and reviewed by editorial team.
If Apple buys chips from these Chinese companies, it could affect the price of Apple devices. Especially those sold in China. It's also a sign of how a global chip shortage is impacting big tech companies. Keep an eye on your device prices.
Apple's potential deal with blacklisted Chinese chipmakers is controversial. Some U.S. officials worry about national security and supply chain risks. No final decision has been made yet. Worth forwarding if you know someone who uses Apple products.
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