Apple leads the push to source Chinese chips, leaving White House officials baffled: Isn't blocking China supposed to create an advantage?
The Financial Times of the UK dropped a bombshell on June 27. Apple is lobbying for special authorization to purchase memory chips from ChangXin Memory Technologies, a Chinese DRAM manufacturer. According to the report, Apple began contacting Washington over a month ago and has been engaged in back-and-forth communications ever since.
White House officials were initially stunned—wasn’t the idea that blocking China would secure an edge? How could Apple, one of America’s own tech giants, be leading the charge to undermine this strategy?
Who is ChangXin Memory Technologies? It is China’s largest memory chip manufacturer. Last year, a cross-departmental committee added it to the U.S. Entity List. By regulation, U.S. companies cannot export goods, software, or technology to entities on the list without special permission—and such applications are typically extremely difficult to approve.
Yet now, this Chinese chipmaker officially blacklisted by the U.S. government has become Apple’s lifeline.
Why is Apple in such a rush? The data speaks for itself.
On June 25, Apple implemented a global price hike across multiple hardware products including MacBook and iPad, with an average increase of around 20%—the largest worldwide pricing adjustment in Apple’s recent history. The company lost $263 billion in market value in just one day, marking the second-largest single-day drop in its history.
Who controls Apple’s memory supply? The three global giants—Micron, Samsung, and SK Hynix—essentially dominate the worldwide DRAM market. These three have shifted most of their production capacity toward high-bandwidth memory used in AI chips, which offer higher profit margins, leaving less room for consumer electronics DRAM. Caught in the middle, Apple faces shrinking negotiating power.
The U.S. intended its blockade to strangle China’s technological advancement and maintain its own edge. But reality delivered a sharp slap.
After being placed on the blacklist, ChangXin not only survived but thrived. By the first half of 2026, ChangXin’s revenue is projected at between 110 and 120 billion yuan, representing over sixfold growth year-on-year; net profit is expected to range from 50 to 57 billion yuan, with a potential year-on-year increase of up to 25 times. Its market share rose from 3.97% in Q2 2025 to 8% in Q1 2026, securing its position as the world’s fourth-largest memory chip supplier.
The blockade failed to stop ChangXin—but instead trapped Apple. Apple wants cheaper memory chips, but the three oligarchs have driven prices sky-high. Looking for a fourth supplier, Apple finds that this very company is on the U.S. government’s blacklist. As a result, Apple is forced to lobby the White House: Can we make an exception so I can buy Chinese chips?
Original article: toutiao.com/article/1869195696894976/
Disclaimer: This article reflects the personal views of the author.