U.S. senators press Apple to reject Chinese memory chips over security risks

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U.S. senators urge Apple on chips

Highlights

Seven U.S. senators sent a July 30 letter demanding Apple commit not to use CXMT and YMTC memory chips due to national security risks, with answers required by August 21, 2026.
Lawmakers warn Apple’s adoption of Chinese memory chips could influence the global memory market, potentially undermining U.S. semiconductor industry growth in Indiana, Idaho, New York, and Virginia.
Section 5949 of the fiscal 2023 National Defense Authorization Act bans federal agency purchases of products with CXMT and YMTC chips starting December 2027, placing additional regulatory pressure on Apple.

Senators set August deadline for Apple

As reported by U.S. Senate Foreign Relations Committee, citing Senate Committee on Finance Minority Press, the senators sent a letter on July 30 to Apple Chief Executive Tim Cook demanding that the company commit not to use memory chips made by ChangXin Memory Technologies, or CXMT, and Yangtze Memory Technologies Co, or YMTC, in any Apple device sold in the U.S. or abroad. They also seek answers by August 21, 2026 about reported testing of Chinese memory chips and alleged lobbying against federal restrictions on Chinese semiconductor suppliers.

The letter is signed by Jeanne Shaheen, Jim Banks, Chuck Schumer, Mike Crapo, Andy Kim, Jim Risch and Pete Ricketts. The lawmakers argue that CXMT and YMTC have been identified by the U.S. government as security risks, noting that the Department of Defense lists both as Chinese military companies and that YMTC was added to the Entity List in 2022.

The senators also ask Apple to detail the status of any testing or qualification work involving Chinese suppliers across DRAM, NAND and HBM products. They request information on what product specifications or roadmaps Apple has shared or could share during supplier qualification, as well as any assessment of patent, legal and operational risks tied to such sourcing.

Semiconductor supply chain and market implications

The lawmakers say Apple's purchasing decisions could influence the wider memory market because of its scale as a component buyer. In their view, adoption of Chinese memory chips by Apple would send a signal to other electronics manufacturers at a time when domestic production is expanding in Indiana, Idaho, New York and Virginia.

They argue that using Chinese chips would run against a federal policy direction already set in law. The letter points to Section 5949 of the fiscal 2023 National Defense Authorization Act, which bars federal agencies from acquiring products using CXMT and YMTC semiconductors beginning in December 2027.

The senators also contend that a China-only use case would not remove the risk, because once a component is qualified for Apple production it can be extended to global devices through a procurement decision. They cite Apple's 2022 review of YMTC NAND for the iPhone as a precedent and say any short-term pricing benefit from CXMT would not outweigh the longer-term security and supply chain exposure.

Qualcomm’s earnings outlook and Apple-related revenue pressure was a focus in our earlier coverage, as the company warned that rising memory, wafer, packaging and testing costs are squeezing margins. We also noted Qualcomm’s expectation that its modem share in the next iPhone will fall below prior estimates, accelerating the projected decline in revenue tied to Apple even as it pivots toward AI and data center growth.

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