US lawmakers push to bar Chinese memory just as prices spike

Two members of Congress want to block US firms from buying Chinese-made RAM and NAND, which could deepen a global memory shortage.

Representatives John Moolenaar and George Whitesides sent a letter to Commerce Secretary Howard Lutnick, made public Thursday, urging tighter restrictions on Chinese memory makers YMTC and CXMT. Both were founded in 2016; CXMT produces DRAM and YMTC produces NAND flash. The lawmakers argue that US purchases would undermine Western memory makers and, in their framing, subsidize the People's Liberation Army. They want an executive order or agency directive barring US persons and US-incorporated entities from buying memory from either company or any firm on the Entity List or the Defense Department's Section 1260H list.

The timing matters. Existing export controls stop US technology from flowing to listed parties but do not stop US companies from buying their goods. Amid rising prices, Apple, Dell, and HP have reportedly begun qualifying CXMT and YMTC memory for their products, giving them a cheaper alternative source.

Memory is a basic input to nearly every device, and prices are already expected to stay high through at least 2028. Cutting off Chinese supply would remove one of the few near-term relief valves. Established makers Micron, Samsung, and SK Hynix are expanding capacity, but new fabs typically take four or more years to reach volume, so the shortage would not ease quickly. That points toward pricier phones, laptops, and servers if the ban lands.

This remains a lawmaker request, not enacted policy. The reports of Apple, Dell, and HP qualifying the parts are described as reported, not confirmed, and the price and fab timelines are projections.

Source: The Register