Bipartisan Senators Tell Apple That Chinese Memory Chips Would Be a 'Mistake'

Six U.S. senators, led by Chuck Schumer (D-NY) and Jim Banks (R-IN), have written to Apple CEO Tim Cook urging him not to source memory chips from Chinese firms CXMT and YMTC. The letter's legal anchor is the Pentagon's 1260H list of companies tied to the Chinese military, a designation that has effectively become a procurement veto over U.S. firms. The letter also pre-empts the cost-savings defense Apple would normally deploy by citing an analyst's argument that CXMT's pricing is at times higher than competitors' and that its production capacity is consumed by Chinese domestic demand.

The bipartisan group includes Andy Kim (D-NJ), Jeanne Shaheen (D-NH), Mike Crapo (R-ID), and Pete Ricketts (R-NE). All six cite the 1260H designation as the formal basis for opposing the procurement. "This short-sighted move would be a mistake, and it would ensure the world's most valuable consumer-electronics company grows dependent on critical supplies from a firm the United States government has formally designated as a Chinese military company," the letter reads, per Bloomberg's reporting (re-reported by Benzinga).

The 1260H list, maintained under Section 1260H of the National Defense Authorization Act, identifies companies "owned by, controlled by, or affiliated with" the Chinese military. It is a disclosure regime rather than a sanctions program: being on the list carries no direct penalties for U.S. firms that buy from listed companies. Its growing operational effect comes from procurement bans in federal contracts, supply-chain due-diligence rules layered on top by other agencies, and political pressure from Congress. In Apple's case, the senators are turning a normally quiet, internal sourcing process into a public fight, and they are using the 1260H designation as the gate.

The cost-savings argument is doing more of the work than the national-security framing alone. The letter explicitly rejects the claim that Chinese memory would meaningfully lower Apple's component costs, citing analysis that CXMT's pricing is at times above competitors' rather than below. Industry analyst Ming-Chi Kuo, writing separately, made the same point from the supply side: CXMT's IPO filing shows production capacity well below Chinese domestic demand, which limits the volume it could actually dedicate to Apple. The senators are using Kuo's analysis to short-circuit the playbook Apple would otherwise reach for, before any deal is even announced.

CXMT held roughly 7.67% of the global DRAM market in late 2025, with analyst projections pointing toward 10% by 2026, per Benzinga's re-report of analyst estimates — a footprint large enough to matter to Apple's memory bill but not large enough to clear a political hurdle in Washington. YMTC, the other named firm, is a NAND flash specialist that is also on the 1260H list. Together they cover both major memory categories Apple buys for iPhones and Macs. Apple did not immediately respond to a request for comment from Bloomberg, which first reported the letter.

The Pentagon's 1260H list is the legal hook; the analyst evidence on costs is the rhetorical one. The next iPhone memory cycle, and any public comment from Apple or CXMT, will show whether the letter was treated as a polite warning or a binding signal.