- Apple filed a petition in June to buy RAM chips from blacklisted Chinese supplier CXMT, a move opposed by Micron which warns it could hurt the US semiconductor industry.
- Micron CEO Sanjay Mehrotra and executives met with Commerce Secretary Howard Lutnick, arguing sales from blacklisted companies could harm the market long-term.
- Micron warns that such sales could harm US tech manufacturing similarly to China’s past influence on the US steel industry.
- Micron plans $250 billion US investment; Apple accuses Micron of price gouging with 80% margins and slow capacity expansion.
- President Donald Trump faces a choice between supporting Apple’s immediate request or backing long-term US chip manufacturing investment.
Micron is actively opposing Apple's petition to source memory chips from CXMT, a Chinese supplier on the U.S. blacklist, arguing it could harm the long-term viability of the U.S. semiconductor industry. The CEO of Micron, Sanjay Mehrotra, has lobbied Commerce Secretary Howard Lutnick and other officials, emphasizing that allowing sales from CXMT could mirror past detrimental influences of China on U.S. manufacturing sectors.12345
Apple's petition, filed in June, seeks permission to purchase RAM chips from CXMT, which is listed on the 1260H List due to its alleged ties to the People's Liberation Army. While Apple has conducted small-scale testing with CXMT, concerns arise that if CXMT is added to the Entity List, all trade could cease.
Micron argues that permitting such sales would undermine U.S. tech manufacturing, similar to historical impacts on the steel industry. In response, Apple claims Micron's 80% gross profit margins indicate price gouging and accuses the company of insufficient investment to increase supply. The situation presents a dilemma for President Trump, who must choose between supporting Apple's immediate request or backing long-term investments in U.S. chip manufacturing.789
Micron plans to invest $250 billion in the U.S. to enhance production capacity, further highlighting the stakes involved in this ongoing dispute.
“Apple filed a petition in June seeking permission to buy RAM chips from CXMT, a company on the Chinese Military Company blacklist. Apple has accused Micron of price gouging with 80% margins, while Micron plans $250 billion in US investment to boost capacity.”
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