Apple wants to use China-sourced chips for products sold in China during the AI-driven memory shortage, but a letter from US senators hopes to persuade Apple otherwise. The ever-increasing demand for components to build data centers has led to a global chip shortage. Apple has looked to blacklisted Chinese companies to bolster its supply chain, but senators want to urge Apple away from this solution.

Apple has officially requested to buy from Chang Xin Memory Technologies Inc. and purchased chips from Yangtze Memory Technologies Co. The US senators, including Banks and Schumer, asked Apple to reconsider using chips from either company and commit to not using them by August 21. The letter arrived days after Micron asked the White House to reject Apple's plans.

While Apple isn't banned from buying chips, it could face repercussions. The US Department of Defense could stop buying Apple products due to the Chinese Military Company Blacklist. Apple could also face regulatory issues and pressure from the Trump administration. Alternatively, Apple may be positioning for a trade deal as Trump expects to meet Xi Jinping in September.

The senators warn that limiting CXMT memory to China-sold devices "cannot be expected to hold" and would set a precedent shaping the memory market for years. The article suggests the memory shortage is tied to an AI bubble that may deflate, and senators should target the root problem rather than chase distractions.