US Lawmakers Seek A Ban On Chinese Memory Purchases

A proposed US restriction on Chinese memory purchases could narrow one short-term supply option for PC and server makers as DRAM and NAND prices stay elevated.

Representatives John Moolenaar and George Whitesides urged Commerce Secretary Howard Lutnick to tighten controls on Chinese memory manufacturers YMTC and CXMT.

The letter, released on Thursday, argued that purchases of Chinese memory by US companies would undermine Western memory makers and subsidise the People's Liberation Army.

YMTC And CXMT Sit In Different US Control Lists

CXMT produces DRAM used in desktops, laptops, smartphones and servers.

YMTC produces NAND flash for storage applications.

Both companies were founded in 2016.

Their chips have historically trailed products from Micron, SK Hynix and Samsung, but large PC makers including Apple, Dell and HP have reportedly begun qualifying Chinese memory while prices remain high.

Lawmakers warned that US reliance on Chinese memory producers would expose Western manufacturers to state-subsidised supply.

Their letter urged the administration to oppose sales of Chinese memory chips abroad and expand existing controls on the manufacturers.

The Requested Order Would Cover US Buyers

CXMT appears on the Defense Department's Section 1260H Chinese Military Company list.

YMTC appears separately on the Commerce Department Bureau of Industry and Security Entity List.

Export rules can limit shipments of American technology to listed companies, including chipmaking equipment.

Those rules do not automatically bar US companies from purchasing finished memory components from the same firms.

The requested executive order or agency directive would bar US individuals and US-incorporated companies from buying memory components from YMTC, CXMT or other entities covered by those BIS and Defense Department lists.

Financial Times reporting cited by The Register said Apple had asked the Trump administration for approval before engaging with either company.

The requested order has not been issued.

Memory Prices May Stay High Through 2028

The memory-supply backdrop is tied to manufacturing capacity.

Micron, Samsung and SK Hynix are expanding production, but new wafer fabs often require four or more years to reach volume production.

Memory prices are expected to remain high through at least 2028.

The Register did not identify a Commerce Department decision, a final executive order, affected purchase contracts, or a timetable for any US procurement ban.