Micron Technology (NASDAQ:MU) shares gained 2.6% ahead of Monday’s opening bell as pressure from the Trump administration on Apple not to source memory chips from Chinese manufacturers strengthened the outlook for U.S. suppliers.
Micron stands to benefit directly from Washington’s position. A U.S. Commerce Department block on Apple sourcing DRAM from China’s ChangXin Memory Technologies, or CXMT, would leave the iPhone maker more dependent on American and allied manufacturers, with Micron the leading U.S. producer.
Commerce Department warns Apple over Chinese suppliers
Commerce Secretary Howard Lutnick told the Wall Street Journal that the administration “does not approve” of Apple using Chinese memory products as a solution to the supply shortage.
He said the shortage “has to be solved another way, but not by having America’s premier companies use memory made in mainland China.”
Asked whether the government’s position had been communicated directly to Apple, Lutnick responded: “Very clearly.”
The comments, reported by AppleInsider on August 15, represent a notable escalation from the political pressure Apple had already faced from lawmakers over its potential use of Chinese memory technology.
Apple explores alternatives as memory shortage intensifies
Apple had been testing DRAM products from CXMT as well as NAND chips supplied by Yangtze Memory Technologies, or YMTC, according to the Wall Street Journal. The initial focus was reportedly on devices intended for the Chinese market.
Apple COO Sabih Khan acknowledged the supply challenge facing the company, saying “we have to consider all viable options.”
However, Apple’s choices are becoming increasingly constrained. CXMT is included on the Pentagon’s Chinese Military Company blacklist and has reportedly rejected Apple’s request for discounted prices, instead seeking pricing comparable with what Apple pays Samsung.
The wider memory market is experiencing significant supply pressure. DRAM prices have climbed approximately 29% during 2026 as rapidly expanding AI data centre demand absorbs capacity that would otherwise be available for consumer electronics.
SK Hynix’s CEO has reportedly described the situation as the “worst-ever memory supply shortage,” with tight conditions potentially persisting into the next decade.
The supply crunch provided an industrial rationale for Apple to investigate Chinese alternatives, while HP and Acer have also reportedly used CXMT memory in devices sold outside the United States.
Micron pushes case for U.S. memory manufacturing
Micron has actively sought to prevent Apple from turning towards CXMT. The company lobbied the White House in July, arguing that an Apple agreement with the Chinese manufacturer would “directly harm U.S. domestic manufacturing and run counter to Washington’s semiconductor reshoring policy”.
The chipmaker is targeting a 40% share of domestic U.S. DRAM production and has committed more than $250 billion to American manufacturing investments through 2035.
Those plans include a new fabrication facility in Clay, New York, where construction began ahead of schedule.
Bipartisan senators previously raised concerns
Political opposition to Apple purchasing Chinese memory chips had already emerged before the administration’s latest intervention.
A bipartisan group of senators led by Sen. Chuck Schumer warned Apple in a June 2026 open letter that “a decision by Apple to procure Chinese memory chips would carry weight well beyond the company’s own purchase orders,” adding that such a decision “would function as a signal that other buyers follow.”
The letter, reported by Gizmodo on August 10, highlighted concerns that an Apple deal with a Chinese supplier could encourage other technology companies to follow the same path.
AI demand strengthens Micron investment case
The policy developments come as analysts are becoming increasingly optimistic about the structural outlook for memory demand.
New Street Research upgraded Micron to Buy on Friday, arguing that memory is “no longer a cyclical story” as artificial intelligence infrastructure reshapes the industry’s demand profile.
Micron shares also benefited from another indication of rapid AI-sector expansion after Anthropic told investors that preliminary second-quarter revenue reached $11.5 billion, representing growth of more than 14-fold from the previous year.
Together, surging AI-related memory demand, tighter global supply and Washington’s push to prioritise domestic semiconductor manufacturing are strengthening Micron’s position as Apple and other technology companies compete to secure memory capacity.
Micron Technology stock price
