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Apple tests Chinese CXMT memory chips for iPhones and MacBooks
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Apple is evaluating memory chips from Chinese manufacturer CXMT for use in iPhones and MacBooks, initially targeting devices sold in China, and has sought White House approval for the move. The testing comes amid a global memory shortage driven by surging AI infrastructure demand from hyperscalers like Google, Microsoft, Meta, and Amazon, which has caused memory costs to rise fourfold. Apple CEO Tim Cook previously announced price increases, calling the pricing environment a 'hundred-year flood.' The effort faces political headwinds, as a bipartisan group of U.S. senators urged Apple not to use Chinese chips. CXMT's technology lags industry leaders SK Hynix, Samsung, and Micron by two to three generations. HP and Acer are already sourcing CXMT chips for non-U.S. markets to offset supply constraints.
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Author: Cris Tolomia Reading Time: 2 min
Apple has been evaluating memory chips from CXMT, a Chinese manufacturer, for potential use across its product lineup — including iPhones and MacBooks — according to Reuters. The company has held early discussions with CXMT regarding component supply, initially focusing on devices sold in China.
Apple is also seeking White House approval to use the chips in products destined for the Chinese market, according to Semafor. This outreach comes amid a global memory shortage driven by surging demand from AI infrastructure buildouts, which has squeezed component supply for consumer electronics manufacturers.
Political and Competitive Challenges
The move faces political headwinds. A bipartisan group of U.S. senators wrote to Apple in July urging the company not to pursue Chinese chips, according to Semafor, as Washington has moved to tighten restrictions on Beijing's technology sector ahead of a summit next month.
According to an analyst cited by CNBC, CXMT's technology lags behind industry leaders — SK Hynix, Samsung, and Micron — by roughly two to three generations.
Industry Context
Apple is not alone in turning to CXMT. HP and Acer are already sourcing CXMT chips for products destined for markets outside the United States, a step both companies have taken to help offset tightening supply, according to Reuters.
Impact on Apple's Pricing
The memory crunch has already forced Apple's hand on pricing. Apple CEO Tim Cook announced price increases on Apple products roughly two months ago, stating that surging memory and storage costs had become "unsustainable" to absorb. Cook described the pricing environment as a "hundred-year flood," noting that the volatility over the prior six months was without precedent in his career.
"We definitely need memory pricing and supply to return to reasonable levels for consumer products."
Root Cause of the Shortage
The shortage stems from hyperscalers — including Google, Microsoft, Meta, and Amazon — dramatically expanding capital expenditure budgets, which caused memory and storage chip costs to rise fourfold. Chip manufacturers have redirected output toward the high-bandwidth memory that AI servers require, shrinking supply available for consumer devices.
Cook signaled Apple was willing to use its balance sheet to help bring additional memory capacity to market, though he ruled out vertical integration into chip manufacturing.
Market Performance
Since its IPO in July, CXMT has climbed to rank among the highest-valued stocks trading on mainland Chinese exchanges.
Apple and CXMT did not respond to requests for comment.
Tickers: AAPL, 688825.SS, SKHY, 005930.KS
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Part of this Story
CXMT's Record IPO and Apple's Chip Tests Amid US-China Tensions