Apple and Micron Technology are pressuring the Trump administration to make opposing decisions regarding the use of Chinese memory chips. The president must choose between reducing consumer prices and expanding domestic semiconductor production, reports The Wall Street Journal.
Apple's CEO Tim Cook and other senior executives have approached administration representatives to allow the use of memory chips produced by Chinese companies ChangXin Memory Technologies and Yangtze Memory Technologies in devices sold outside the U.S.
The iPhone manufacturer argues that involving Chinese suppliers will help alleviate the global memory shortage and curb price increases for American consumers. According to available data, Cook has discussed this proposal with Trump, Secretary of Commerce Howard Lutnick, and Secretary of the Treasury Scott Besent.
Micron, the only major American memory chip manufacturer, opposes this initiative. Company executives have warned that allowing American tech companies to purchase products from Chinese manufacturers could weaken domestic production, regardless of where the finished products are sold.
Both companies, CXMT and YMTC, have been recognized by the Pentagon as Chinese military enterprises, and YMTC is also included in the U.S. Entity List. White House technology advisor Michael Kratsios has informed lawmakers that American companies should not do business with organizations included in the trade blacklist.
The conflict has intensified against the backdrop of memory chip prices quadrupling over the past year, according to TechInsights data. Artificial intelligence data centers are consuming increasing amounts of advanced memory at high prices, which limits Apple's negotiating power and intensifies competition for supplies in the smartphone, automotive, and medical equipment sectors.
Apple has accused Micron of profiting from the shortage, pointing to gross margins exceeding 80% and stating that new production capacities are disproportionately directed towards servicing clients in the artificial intelligence sector.
Micron claims that the increase in consumer electronics prices is due not only to the cost of memory chips. The company has promised to invest $250 billion in the development of production in the U.S. and stated that accelerating the construction of domestic factories will allow it to eliminate supply shortages without involving Chinese manufacturers.
Trump has praised the investments of both companies in the U.S. economy. His administration is also conducting trade negotiations with Beijing, which further complicates any decision that could impose new restrictions on Chinese technology suppliers.
