The United States Wants to Ban Chinese Memory... Even in Europe, Japan, and South Korea

In the United States, the rise of CXMT and YMTC in the DRAM and 3D NAND memory segment has sparked a new debate among high-ranking government officials. According to the Financial Times, two American lawmakers, Republican John Moolenaar and Democrat George Whitesides, have urged Commerce Secretary Howard Lutnick to introduce new restrictions to prevent American companies from purchasing semiconductors made by Chinese firms on the so-called "blacklist" of companies linked to China’s military apparatus.

According to the two legislators, any dependence on "Chinese memories" represents a risk to national security, economic security, and the resilience of the supply chain. For this reason, they have requested that CXMT also be added to the Entity List of the Department of Commerce and that further restrictions be applied to YMTC.

This request comes as Apple seeks approval from the Trump administration to use DRAM made by CXMT, a choice obviously linked to the significant global shortage of this component. The growing demand generated by the development of infrastructure dedicated to artificial intelligence has reduced the availability of DRAM in the international market and is pushing numerous manufacturers to find new sources of supply. Moreover, we could consider Apple the latecomer, as companies like Corsair and Patriot have long been using chips from CXMT or YMTC for their RAM or SSD modules.

Currently, CXMT appears on the Pentagon's list of Chinese companies considered linked to the military apparatus, while YMTC is already present on the Entity List of the Department of Commerce. Being on these lists does not automatically prohibit American companies from purchasing their products but rather limits the sale of devices and technologies to such companies. In summary, the issue is actually much more political than commercial.

The lawmakers believe that any purchase of memories from these producers may indirectly contribute to the development of China’s technological capabilities, including in military applications, considering that DRAM and 3D NAND are fundamental components for many advanced applications.

In the letter addressed to the Department of Commerce, it is also suggested to coordinate an action with Japan, South Korea, and the European Union. The goal of the U.S. lawmakers is to prevent the entry of CXMT and YMTC into the production chains of allied countries to avert, in their view, the risk of dependence on Chinese suppliers for components considered essential for the development of infrastructure dedicated to AI.

According to Moolenaar and Whitesides, the strengthening of Chinese memory producers could also reduce the competitiveness of the Western industry due to state support received by Chinese companies, risking a long-term weakening of the production capacity of traditional DRAM and 3D NAND suppliers.