Apple is actively testing memory chips from China’s ChangXin Memory Technologies (CXMT) for devices sold in China, while simultaneously lobbying the Trump administration for assurances to incorporate the supplier amid a severe global DRAM shortage.
According to the Financial Times and corroborating reports, Apple has begun qualification testing of CXMT’s DRAM products. Although the company has not yet committed to commercial volumes, the testing signals serious intent as it seeks to ease cost pressures and secure supply.
AI-driven demand for high-bandwidth memory has diverted production from consumer-grade DRAM and LPDDR, causing sharp price spikes (some contracts up 50-60%). This forced Apple to implement rare price increases of up to 20% on MacBooks, iPads, and other hardware in late June.
Adding CXMT (and potentially Yangtze Memory Technologies for NAND) would:
• Diversify beyond Samsung, SK Hynix, and Micron.
• Strengthen Apple’s negotiating position on pricing and allocation.
• Help guarantee supply through 2027, at least for China-market devices.
CXMT’s Rapid Ascent
CXMT, a CCP state-backed champion, has grown into the world’s fourth-largest DRAM producer with about 11% of global wafer capacity (forecast to hit 15% by 2028). It is mass-producing competitive DDR5 and LPDDR5X chips and preparing a major IPO.
Geopolitical Risks
CXMT remains on the Pentagon’s Section 1260H list of Chinese military-linked companies. While not outright banned for commercial purchase, deeper engagement could draw congressional criticism and regulatory scrutiny. Apple, including through direct engagement by outgoing CEO Tim Cook, is seeking political cover to mitigate that risk.
MacDailyNews Take: This development reflects the intense strain the AI boom is exerting on supply chains. Even Apple with its massive purchasing power is turning to alternative sources as traditional suppliers prioritize higher-margin AI customers.
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