Apple has begun testing DRAM chips from Chang Xin Memory Technologies (CXMT) for devices sold in China, despite the Pentagon adding the company to its 1260H blacklist of firms linked to the People's Liberation Army. The Financial Times reports Apple has advanced to device-level validation while lobbying the Trump administration for explicit permission to proceed.

CXMT has rapidly become the world's fourth-largest DRAM producer behind Samsung, SK Hynix, and Micron, fueled by a global memory shortage that reversed its prior financial losses. The company counts 15 state-owned shareholders and plans a $4.3 billion IPO, underscoring Beijing's strategic push for semiconductor self-sufficiency.

Apple currently sources memory from all three incumbent suppliers but still raised prices across iPad and Mac lineups amid constrained supply. Adding CXMT would diversify its supply chain for the Chinese market, though the arrangement carries political risk: the 1260H designation doesn't legally bar transactions, but defying Washington could trigger retaliation.

Representative John Moolenaar has already labeled the potential partnership a "grave mistake," signaling bipartisan congressional resistance. If approved, the deal would mark a rare instance of a U.S. tech giant integrating a blacklisted Chinese component supplier — setting a precedent for how export controls intersect with commercial necessity in a fragmented semiconductor landscape.