Commerce Secretary Howard Lutnick has expressed opposition to Apple's plans to purchase memory chips from Chinese manufacturers CXMT and YMTC. Despite Apple's efforts to find alternative sources amid ongoing global supply shortages, the US government has raised concerns about national security and strategic interests. Both CXMT and YMTC are listed on the US Commerce Department's Entity List, with the Pentagon designating them as Chinese military companies due to alleged ties to China's military. Apple's COO Sabih Khan acknowledged that while Apple customizes many iPhone components, there is limited customization available for memory, suggesting off-the-shelf options might suffice. However, if Apple were to pursue customized chips, sharing product information would violate export-control regulations requiring licenses from the Commerce Department.

The Trump administration has clearly signaled that Apple should avoid sourcing memory from these Chinese firms. Under pressure from bipartisan groups of US senators who urge Apple to abandon Chinese suppliers, the administration views reliance on Chinese memory as unacceptable for American companies. This stance comes alongside Apple's broader strategy to expand memory supply options, including discussions led by CEO Tim Cook with the administration about evaluating all alternatives.

Apple's $600 billion investment in domestic manufacturing in Houston represents a major effort to increase self-reliance and maintain favorable relationships with the Trump administration. Yet, it is becoming evident that a deal allowing Apple to source memory chips from China will not be included in the new manufacturing package. Commerce Secretary Lutnick stated the administration does not want Apple to buy memory chips from China, emphasizing that "other solutions" are needed since "it's not great [for] American companies using Chinese memory."