Apple wants Chinese chips. Micron says no. Trump has to choose a side.

TLDR

• Apple wants permission to use Chinese memory chips in devices sold outside the United States to ease global shortages and cut costs
• Micron, the only large American manufacturer of memory chips, is lobbying strongly against the move, warning that it could harm domestic manufacturing.
• Memory chip prices have quadrupled over the past year, driven by demand for artificial intelligence data centers
• Both Chinese suppliers involved – CXMT and YMTC – have been designated as Chinese military enterprises by the Pentagon.
• Trump must choose between lowering consumer prices and protecting semiconductor production in the United States

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Apple is stuck in a tug of war between two of its biggest priorities — and so is the president.

Apple CEO Tim Cook met with senior Trump administration officials, including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Besent, to push for permission to use memory chips from two Chinese companies: ChangXin Memory Technologies and Yangtze Memory Technologies.

Apple and Micron $ Mo It is now locked in a major lobbying battle over memory chips, according to the Wall Street Journal.$ Apple It is lobbying the White House to allow it to use chips from Chinese companies CXMT and YMTC in products sold outside the United States, arguing that would ease global shortages and lower costs. pic.twitter.com/yln2yoDWki

– Wall Street Engine (@wallstengine) July 25, 2026

Apple says the move will help alleviate the global memory shortage and slow price increases for US consumers. The chips will only be used in Apple devices sold outside the United States.

Micron Technology stands directly in the way of Apple, the only large memory chip manufacturer in the United States. Micron CEO Sanjay Mehrotra warned administration officials that allowing U.S. technology companies to buy from Chinese producers — even for overseas products — could hurt the domestic chip industry.

Micron compared the risks to what happened to steel and manufacturing in the United States, where Chinese competition played a role in hollowing out those industries over time.

Micron Technology Inc., MU

Prices quadrupled

Memory chip prices have risen sharply over the past year, quadrupling according to research firm TechInsights. This rise is largely due to AI data centers, which are purchasing large amounts of advanced memory at premium prices.

This demand has eroded the available supply of smartphones, medical devices and cars, and stripped Apple of the pricing power it once enjoyed over chip suppliers.

Apple accused Micron To take advantage of the shortage. The iPhone maker points to Micron’s gross profit margins, which now exceed 80%, as evidence of price gouging. Apple also claims that Micron is directing new production capacity toward AI customers rather than consumer electronics.

Micron rejects this characterization. The company says the price hikes reflect more than just memory costs, and has pledged to spend $250 billion on U.S. manufacturing to build domestic capacity.

National security complicates the picture

The two Chinese companies at the center of the dispute are carrying national security flags. YMTC is on the US Entity List – a trade blacklist – and both CXMT and YMTC have been designated as Chinese military companies by the Pentagon.

White House technology adviser Michael Kratsios told lawmakers this week that US companies should not do business with Entity List companies.

apple It previously tried to work with YMTC in 2022 but backed out after political pressure, including a warning from then-Senator Marco Rubio that Apple was “playing with fire.” Rubio now serves as Secretary of State and remains involved in current discussions.

Trump has praised both Apple and Micron for investing in the United States and has so far avoided taking a public stance. His administration is also in the middle of trade negotiations with China, adding another layer of complexity to any decision.