July 2, 2026 /SemiMedia/ —Apple is seeking to buy memory chips from Chinese suppliers including ChangXin Memory Technologies for devices sold in China, according to people familiar with the matter.

The discussions are still ongoing, and no final agreement has been reached.

Apple Chief Executive Officer Tim Cook has also appealed to Trump administration officials, including Treasury Secretary Scott Bessent, seeking help in reducing the potential impact of any deal with Chinese chipmakers.

The discussions come as Apple and other consumer electronics companies face an unprecedented shortage of memory chips. Demand from artificial intelligence data centers has surged, with high-end processors requiring large amounts of memory. Memory suppliers have shifted more production toward this fast-growing market, where products can command higher premiums, a change that is also reshaping memory chip prices and the AI-driven DRAM cycle.

That shift is tightening supply for consumer electronics. Smartphones, PCs, tablets and other devices require DRAM and storage products, but more memory capacity is being allocated to AI servers and data centers.

Apple currently relies on Samsung Electronics, SK hynix and Micron Technology for memory used in its mobile devices and computers. If Apple can buy chips from CXMT and other Chinese suppliers, it could expand its memory supplier base to five companies and improve supply flexibility for devices sold in China.

However, any such arrangement could face policy and regulatory uncertainty. Chinese memory suppliers remain under close scrutiny within the U.S. technology control framework, and Apple would need to balance supply security, cost pressure, geopolitical risk and regulatory concerns.

The memory shortage is changing procurement strategies across the technology industry. Samsung Electronics, SK hynix and Micron have all outlined large-scale capacity expansion plans to meet AI data center demand. At the same time, major customers are increasingly using long-term supply agreements, prepayments and capacity commitments to secure future memory supply.

Apple has recently raised prices for Macs, iPads, smart home devices and Vision Pro to offset higher costs caused by memory chip shortages. A company spokesperson said the rapid development of AI has driven component price increases at a speed and scale Apple has not seen before.

Industry analysts said Apple’s effort to diversify memory supply shows how AI demand is spilling into the broader consumer electronics market. As AI servers continue absorbing advanced memory capacity, device makers may need more regional and diversified sourcing strategies to reduce exposure to higher memory prices and supply disruption.