Apple and Micron are reportedly lobbying the US government from opposing sides as Apple seeks permission to source memory chips from Chinese manufacturer CXMT.
Apple argues that access to lower-cost Chinese memory could help reduce product prices for American customers during a period of unusually high DRAM costs. Micron, meanwhile, is warning officials that allowing CXMT into the US supply chain could weaken domestic semiconductor manufacturing.
The dispute reportedly involves Apple CEO Tim Cook, Micron CEO Sanjay Mehrotra, US Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and other officials.
Apple has not announced a final supply agreement with CXMT. Reports suggest the company has tested CXMT memory and could initially use it in products sold within China or other markets outside the United States.
The negotiations are further complicated by a strained relationship between Apple and Mehrotra that reportedly dates back to his years leading storage company SanDisk.
| Party | Reported position |
|---|---|
| Apple | Wants approval to procure memory from CXMT |
| Micron | Opposes Chinese memory entering the US supply chain |
| CXMT | Potential Apple DRAM supplier |
| US government | Considering economic and national security concerns |
| Likely initial market | Apple products sold in China or outside the US |
| Main disagreement | Cost savings versus protection of domestic industry |
Apple says CXMT memory could help control rising product costs
Apple is looking for additional memory suppliers as the global DRAM market faces higher prices and constrained supply.
AI data centres are consuming growing quantities of memory, while manufacturers are directing more capacity towards high-margin server and accelerator products. This has increased costs across smartphones, computers and other consumer electronics.
Apple reportedly believes that adding CXMT could improve supply availability and strengthen its negotiating position with established manufacturers.
The company is said to be arguing that lower component costs could help reduce prices for American customers. However, the report does not establish whether Apple has committed to passing any savings directly to buyers.
Apple traditionally uses several suppliers for important components where possible. This reduces dependence on one company and encourages price competition.
Adding CXMT could give Apple another source of DRAM alongside companies such as Samsung, SK hynix and Micron.
Recent reports, however, suggest that CXMT is no longer consistently cheaper than its international rivals. Strong domestic demand has reportedly allowed the Chinese manufacturer to charge more than Samsung for some server DDR5 products.
The economics of any Apple agreement would therefore depend on the specific memory type, contract length, delivery volumes and market conditions.
Micron warns that approval could damage the US memory industry
Micron CEO Sanjay Mehrotra is reportedly opposing Apple’s effort.
His argument is that allowing Chinese memory suppliers greater access to the US market could undermine domestic manufacturers in a similar way to earlier competition in industries such as steel and general manufacturing.
Chinese semiconductor companies benefit from state support, access to a large domestic market and policies designed to reduce dependence on foreign technology.
Micron may be concerned that CXMT could use those advantages to increase production, lower prices and gain customers before attempting to expand internationally.
The US government must consider whether approving Apple’s request would improve competition or weaken a strategically important domestic supplier.
Micron is the only major US-based producer of DRAM. Samsung and SK hynix are headquartered in South Korea, while CXMT is based in China.
Memory is increasingly treated as a national security issue because it is required in data centres, military equipment, communications infrastructure and advanced AI systems.
Tension between Apple and Micron reportedly began years ago
The current disagreement appears to be influenced by a difficult history between Apple and Mehrotra.
People familiar with the relationship reportedly say Apple has long pushed component suppliers to accept low prices while maintaining high margins on its finished products.
This purchasing strategy can create large orders for suppliers, but it may also leave them dependent on Apple while operating with limited margins.
The tension reportedly dates back to Mehrotra’s time at SanDisk. He is said to have avoided meetings with Apple representatives because of disagreements over commercial terms.
These claims have not been publicly confirmed by Apple, Micron or Mehrotra.
Large technology companies commonly negotiate aggressively with suppliers, especially when purchasing millions of components each year. Suppliers may accept lower margins in exchange for volume, production stability and the credibility that comes from working with Apple.
The relationship can become difficult when a supplier has stronger pricing power or when market shortages reduce Apple’s ability to demand discounts.
The current memory shortage gives Micron and other manufacturers greater leverage than they had during periods of oversupply.
Apple may initially limit CXMT memory to products sold in China
Several reports suggest that Apple’s first use of CXMT memory, if approved, may be limited geographically.
The company could use the chips in devices manufactured or sold in China while continuing to rely on other suppliers for the US market.
This approach could help Apple diversify supply without immediately introducing Chinese memory into American products.
It may also allow CXMT to prove its manufacturing quality and reliability through a controlled deployment.
Apple requires suppliers to meet strict standards involving performance, power efficiency, production consistency and long-term reliability.
A large Apple contract can transform a smaller supplier by increasing factory utilisation and providing revenue for further expansion.
The relationship also creates dependence. Suppliers may invest heavily in equipment and capacity designed around Apple’s requirements, leaving them exposed if orders are reduced later.
CXMT would therefore gain both opportunity and risk from becoming an Apple supplier.
US restrictions remain a major obstacle
Apple’s plans depend partly on how the US government classifies CXMT.
The company is reportedly seeking assurances that CXMT will not be added to the Commerce Department’s Entity List.
American companies generally require special licences to conduct certain business with organisations on that list.
CXMT’s position is sensitive because the United States is restricting China’s access to advanced semiconductor technology, particularly equipment used for AI chips and high-bandwidth memory.
Approving Apple’s request could be seen as supporting consumer competition and supply diversification.
Rejecting it could protect Micron and limit the growth of a Chinese semiconductor manufacturer viewed as strategically important to Beijing.
The government must also consider whether memory used in consumer devices presents the same security concerns as advanced processors or networking components.
The report does not indicate that a final decision has been made.
Apple’s sourcing strategy faces a changed memory market
Apple has historically used its enormous purchasing volume to secure favourable component prices.
That strategy becomes harder when supply is limited and manufacturers have other customers willing to pay more.
AI companies and cloud providers are purchasing memory in large quantities and may accept higher prices because the value of complete data centre systems is much greater than the cost of individual memory modules.
CXMT has also reportedly signed long-term agreements with major Chinese technology companies, limiting the amount of spare capacity available to new customers.
This means Apple may not receive the pricing advantage it expects unless it commits to very large orders or long-term contracts.
Micron, Samsung and SK hynix also have less incentive to offer steep discounts while demand remains strong.
Apple’s interest in CXMT therefore reflects both a search for lower prices and a need to secure enough supply for future products.
No final CXMT agreement has been confirmed
Apple is reportedly testing CXMT memory and lobbying for regulatory approval, but it has not announced a completed supply contract.
Micron’s opposition also does not mean the US government will reject Apple’s request.
The outcome will depend on trade policy, national security concerns, CXMT’s regulatory status and the commercial terms offered to Apple.
The disagreement highlights a wider conflict in the semiconductor industry.
Apple wants more suppliers to reduce costs and supply risk. Micron wants protection from competitors it believes benefit from unfair state support. The US government must decide how to balance consumer prices, domestic manufacturing and its broader technology strategy toward China.
Until regulators or the companies provide formal confirmation, Apple’s potential use of CXMT memory remains under discussion rather than settled.
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