Shares of Micron Technology Inc. advanced on Tuesday after a report that the White House has privately urged Apple Inc. to phase out Chinese-made memory chips, which are primarily supplied by Micron’s domestic competitors.
The U.S. government’s push is part of a broader effort to reduce reliance on Chinese semiconductor supply chains, according to people familiar with the matter cited by Bloomberg. The administration has raised concerns over potential security risks and supply chain vulnerabilities associated with Chinese chip manufacturers.
Micron, a U.S.-based memory chip producer, stands to benefit if Apple accelerates plans to shift orders away from Chinese suppliers. The company’s stock was up 1.8% in midday trading, outperforming the broader tech sector. Apple has not publicly commented on the matter, and its procurement strategy remains unchanged, according to a person familiar with the discussions.
The Biden administration’s stance aligns with recent measures to bolster domestic semiconductor production, including the CHIPS Act, which provides billions in subsidies for U.S. chipmakers. While the push targets Chinese suppliers, it does not explicitly name any company or impose formal restrictions. Analysts note that any shift in Apple’s supply chain would likely occur gradually, given the complexity of global semiconductor sourcing.
Micron’s revenue remains heavily dependent on data center and mobile memory markets, where competition from Chinese firms has intensified. The company has emphasized its focus on expanding U.S. and allied-country manufacturing capacity to meet demand. A potential long-term contract with Apple could provide a significant boost to Micron’s market position, though no agreements have been confirmed.
The broader tech sector remains sensitive to geopolitical supply chain dynamics, with investors closely monitoring shifts in U.S.-China trade and industrial policy.
