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Apple Asks White House to Approve Chips From Blacklisted Chinese Firm

Apple is seeking US government permission to buy memory chips from sanctioned Chinese chipmaker CXMT as the company works to cut costs.

Apple is lobbying the White House for clearance to source memory chips from Chinese Memory Technology, known as CXMT, a Chinese chipmaker that has been placed on a US government blacklist, the Financial Times reported Saturday. The iPhone maker's push comes as it seeks to reduce its semiconductor expenses amid mounting pressure on hardware margins.

CXMT's blacklisted status means American companies are generally prohibited from doing business with it without explicit government authorization. Apple's request for a special exemption signals how aggressively the tech giant is pursuing cost reductions, even when that path runs through sensitive geopolitical territory.

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The move puts Apple at the center of escalating tensions between Washington and Beijing over semiconductor supply chains. The Biden and Trump administrations have both worked to limit Chinese access to advanced chip technology, making any waiver for a US company to buy from a blacklisted Chinese firm a politically charged decision for the White House.

Apple's chip-cost pressures have already shown up in its product lineup, with price hikes recently hitting iPads and Macs. Whether the administration grants the exemption could set a significant precedent for how US firms navigate restrictions on Chinese technology suppliers going forward.

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Frequently Asked Questions

Q.Why is Apple seeking approval to buy chips from CXMT?

Apple is trying to reduce its chip costs and has asked the White House for permission to purchase memory chips from CXMT, a Chinese company currently on a US government blacklist.

Q.What is CXMT and why is it blacklisted?

CXMT, or Chinese Memory Technology, is a Chinese chipmaker that has been placed on a US government blacklist, which generally bars American companies from doing business with it without special government authorization.

Q.How has Apple's chip cost pressure affected its products?

Apple has already implemented price hikes on iPads and Macs, reflecting the financial strain from rising hardware and semiconductor costs.

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