Apple is in talks to buy memory chips from two Chinese semiconductor companies, CXMT and YMTC, according to Bloomberg. Both firms sit on a Pentagon blacklist, but Apple is reportedly considering their chips for devices it sells inside China.
According to Bloomberg's sources, the move would help Apple reduce costs and secure supply for products destined for the Chinese market specifically. Sourcing chips locally could ease pressure on Apple's supply chain as demand for memory tightens.
CNBC, citing reports, frames the discussions as part of a larger push. The company is said to be planning five new iPhones through 2027 and is eyeing Chinese memory suppliers as it expands production of foldable devices. CNBC also points to a memory shortage as part of the backdrop driving Apple toward new suppliers.
The interest in CXMT and YMTC is notable because both are Chinese chipmakers flagged by the Pentagon, which places Apple's potential purchases at the intersection of commercial strategy and geopolitical sensitivity. The reported plan to limit these chips to China-sold devices suggests Apple is trying to navigate that tension carefully.
As reported, these remain negotiations, not finalized deals, and terms could change.
Why it matters: Apple's willingness to consider blacklisted Chinese chipmakers shows how memory shortages and cost pressures are pushing even the world's most scrutinized hardware company toward suppliers that carry real political risk.