Apple is testing memory components from Chinese manufacturer CXMT across its iPhone and MacBook lineups to counter a global supply shortage driven by the artificial intelligence boom, according to a report by The Wall Street Journal. The tech giant has held preliminary discussions about using these chips in devices sold within China, pending approval from the White House, as supply constraints force the company to raise prices.
Regulatory Hurdles and Supply Chain Pressures
According to The Wall Street Journal, any deal between Apple and CXMT faces severe political hurdles. United States trade regulations prohibit technology transfers to CXMT because Washington has placed the company on an entity list over alleged ties to the Chinese military. Because of these restrictions, Apple cannot order custom-made chips from the manufacturer, leaving the company restricted to purchasing standard components and negotiating prices.
Several US officials have raised concerns that purchase orders from major American corporations like Apple could finance the expansion of CXMT, to the detriment of US-based competitor Micron. Despite these regulatory roadblocks, other hardware makers such as HP and Acer have already integrated CXMT memory chips into devices sold outside the United States.
Production Capacities and Market Position
CXMT does not currently offer a short-term fix for the global memory shortage. According to supply chain details cited by The Wall Street Journal, the Chinese manufacturer is operating at full capacity, prioritizing production for domestic AI leaders including ByteDance, Tencent, and Xiaomi. Furthermore, CXMT’s pricing occasionally exceeds that of established South Korean and American rivals, while its DRAM technology remains behind that of SK Hynix, Samsung, and Micron.
Despite these technological gaps, CXMT’s growth remains rapid, with second-quarter figures showing revenue multiplied eightfold over a one-year period. Neil Shah, an analyst at Counterpoint, characterized the firm’s trajectory to The Wall Street Journal by stating that the primary question surrounding the company is not how, but when it will integrate the “Club des Trois Grands de la mémoire.”
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