• Senator Tom Cotton warns Apple (AAPL) against sourcing memory chips from Yangtze Memory Technologies Co., citing national security risks.
  • The warning adds pressure on Apple to diversify its supply chain amid ongoing U.S.-China tech tensions.
  • Apple has not publicly commented on the matter, but investors are watching for potential impacts on costs and product timelines.

Senator Tom Cotton is pushing back against Apple’s potential use of chips from Chinese state-affiliated supplier YMTC, arguing it could compromise U.S. security and supply-chain integrity. In recent remarks, Cotton, a Republican from Arkansas, reiterated his concerns that YMTC’s ties to the Chinese government and military pose risks for a high-profile device like the iPhone. “Apple must not rely on a supplier that is effectively an arm of the Chinese Communist Party and the People’s Liberation Army,” Cotton said in a statement. He has previously sent letters to Apple’s CEO Tim Cook warning against the move.

The warning comes as Apple evaluates its supply chain for NAND memory chips, with YMTC emerging as a cost-effective option. However, U.S. policymakers have increasingly scrutinized Chinese semiconductor suppliers, and YMTC has been on the radar for potential export controls or blacklisting. Cotton’s remarks signal that congressional action could be on the horizon if Apple proceeds. “Without a clear commitment to avoid blacklisted suppliers, the company could face significant regulatory hurdles,” said a person familiar with the matter.

Apple has not responded to requests for comment. The company has historically worked to comply with U.S. regulations, but sourcing decisions are complex given its global manufacturing footprint. Analysts note that shifting suppliers could increase costs and delay product launches. “Apple may need to accelerate its diversification away from Chinese suppliers, which could hit margins in the short term,” said a supply-chain expert. The issue underscores the broader tension between national security and corporate efficiency, a debate that is likely to intensify as geopolitical risks mount.