The rise of China’s memory chip sector is creating a geopolitical dilemma for US tech companies.

Chinese firms CXMT and YMTC are gaining ground because South Korean and American chip giants can’t keep pace with AI-fueled demand for memory chips, which is driving prices higher. But US firms eyeing new supply sources are wary of turning to China because of Washington’s restrictions on buying chips from the country, The Wire China reported.

While one analyst noted “increasing interest in using CXMT memory,” experts fear the temptation could risk making the US “dependent on China for a vital product.”