Apple is reportedly in discussions to source memory chips from Chinese manufacturers CXMT and YMTC. This move comes as a global memory shortage drives up costs for consumer electronics, prompting Apple to seek more affordable components. The discussions are ongoing, with no final agreement yet reached.

Global chipmakers are prioritizing AI server components, leading to reduced supply for devices like Macs and iPads. This scarcity has already contributed to recent price increases for Apple products. The company is reportedly seeking to secure RAM at a lower cost through these potential Chinese partnerships.

Both CXMT and YMTC face scrutiny from the U.S. government; YMTC is on a Commerce Department blacklist, and both are on a Defense Department list of Chinese companies with suspected ties to the People's Liberation Army. Apple is engaging with Trump administration officials to navigate potential political fallout and secure approval.

Apple previously attempted to source chips from YMTC in 2022, but those talks collapsed after congressional backlash. The company is proposing to use these Chinese-made chips primarily for devices sold in the Chinese market.