Apple is considering memory chips from China's ChangXin Memory Technologies and Yangtze Memory Technologies as AI-driven shortages and higher prices lift smartphone component costs, though analysts say raising the option may also help Apple press established suppliers for better terms. Commerce Secretary Howard Lutnick has now made clear the Trump administration is "not in favor" of Apple buying memory from the two Chinese suppliers, even for products sold outside the United States. Apple had been testing CXMT's DRAM and negotiating with YMTC for NAND supply after seeking guidance from the administration in June 2026, but the plan has drawn bipartisan Senate pressure, lobbying from Micron and a reported Aug. 21, 2026 deadline to commit to avoiding the companies. The issue is politically and regulatorily sensitive because YMTC has been on the Commerce Department's Entity List since 2022 and CXMT was added to the Pentagon's Chinese Military Companies list in 2025, while U.S. policymakers are resisting deeper reliance on Chinese semiconductor firms as AI-driven demand pushes memory prices higher.