Will the US ban Chinese CXMT and YMTC memory in Europe as well?

The US authorities are once again tightening the pressure on the Chinese semiconductor industry. This time, the focus is on memory manufacturers CXMT and YMTC. According to the Financial Times, representatives John Moolenaar and George Whitesides sent an official letter to Commerce Secretary Howard Lutnick. In it, they demand stricter measures that would prohibit American companies from buying chips from Chinese manufacturers on the government's blacklist of companies linked to the Chinese military.

The MEPs warn that dependence on Chinese memory poses a risk to national security, the economy and the stability of supply chains. They therefore propose that CXMT be blacklisted by the US Trade Administration and that additional restrictions be imposed on YMTC.

This political initiative comes at a rather inconvenient time. Apple is trying to obtain permission from the Trade Administration to use DRAM memories from CXMT. The reason is simple. There is a shortage of these components on the market, as the development of artificial intelligence infrastructure has greatly increased demand. Apple is not the first to do this, as well-known brands Corsair and Patriot have been using CXMT and YMTC chips in their RAM modules and SSD drives for a long time.

CXMT is currently on the Pentagon's list for its ties to the military, and YMTC is already on the blacklist. However, these lists do not directly prohibit American companies from purchasing products, but rather restrict the sale of American technology to these Chinese companies. So it's a political issue rather than a commercial one.

The MEPs argue that the purchase of these memories indirectly helps to strengthen China's military capabilities, as DRAM and 3D NAND are key to advanced applications. They also propose coordinated action with the European Union, Japan and South Korea to prevent Chinese chips from entering allies' supply chains and thus long-term dependence in the development of artificial intelligence. They also warn that state aid to Chinese companies could reduce the competitiveness of Western industry and weaken traditional suppliers.