Apple wants to buy memory chips from a Chinese company the Pentagon says has ties to the military. Senator Tom Cotton thinks that’s a terrible idea.

The iPhone maker is lobbying the Trump administration for permission to source chips from ChangXin Memory Technologies, better known as CXMT, a Chinese DRAM manufacturer that sits on the Pentagon’s blacklist of companies with alleged links to China’s military. The move is driven by rising memory chip prices that are squeezing Apple’s supply chain, particularly for products like Mac RAM.

A sequel nobody asked for

Back in September 2022, Cotton sent a letter directly to Tim Cook warning Apple against sourcing NAND flash chips from Yangtze Memory Technologies Corporation, another Chinese chipmaker with ties to Beijing’s semiconductor ambitions. Cotton’s argument then was straightforward: YMTC was engaged in supporting China’s semiconductor initiatives and had collaborations with sanctioned entities.

Apple backed down. The company abandoned its YMTC sourcing plans under political pressure, and the episode became a case study in how Washington can muscle even the world’s most valuable company into changing its supply chain strategy overnight.

Now Apple is essentially running the same play with a different Chinese chip company. CXMT manufactures DRAM, the type of memory used in everything from smartphones to laptops to servers. And like YMTC before it, CXMT carries the Pentagon designation that makes it politically radioactive in Washington.

The Chip Security Act and the bigger picture

Cotton’s opposition to Apple’s CXMT plans isn’t just rhetorical posturing. The Arkansas senator introduced the Chip Security Act in May 2025, legislation specifically designed to prevent the diversion of US chips to adversaries.

Here’s the thing about the Pentagon’s blacklist: being on it doesn’t automatically make purchasing illegal in every case. The legal implications surrounding CXMT’s supplier status remain politically sensitive, even if certain procurement pathways might technically be permissible. That’s precisely why Apple is lobbying for explicit clearance rather than just placing orders.

What this means for investors

Apple’s calculus here is straightforward economics. Memory chip prices fluctuate, sometimes dramatically, and locking in supply from a lower-cost Chinese manufacturer could meaningfully reduce production costs across Apple’s product lineup. CXMT, as a DRAM producer competing against established players like Samsung, SK Hynix, and Micron, would presumably offer competitive pricing that makes the political headache worth navigating.

If Apple secures clearance and begins sourcing from CXMT, the company immediately becomes a target for legislators who view any commercial relationship with Pentagon-blacklisted firms as a national security compromise. Cotton has already demonstrated his willingness to apply pressure publicly, and the Chip Security Act gives him a legislative vehicle to potentially block such arrangements entirely.

Conversely, if Cotton and allied lawmakers successfully block the deal, as they effectively did with YMTC in 2022, it reinforces the precedent that political risk overrides cost savings when it comes to Chinese semiconductor suppliers. That outcome would likely benefit established non-Chinese memory manufacturers who compete directly with CXMT for Apple’s business.