US Senators Demand Apple Cut Ties With Chinese Chipmakers

The lawmakers are demanding confirmation that Apple will exclude these suppliers from all devices, including those manufactured exclusively for the Chinese market. Concerns stem from the Pentagon’s recent inclusion of both companies on its Section 1260H list, which identifies entities with ties to the Chinese military. Beyond the ban, the senators are pressing for disclosure on whether Apple has transferred any intellectual property to these firms during component evaluations.

This pressure arrives as Apple navigates a tightening global memory market, where AI data centers have monopolized supply from major producers like Samsung, SK Hynix, and Micron. By blocking CXMT and YMTC, Apple risks diminished bargaining power and higher production costs, forcing a choice between absorbing expenses or passing them to consumers. While Apple has previously argued that access to these suppliers is necessary for its supply chain stability, the company faces a critical decision point that could impact its procurement strategy for the 2027 iPhone cycle.