Apple Tests CXMT DRAM for China Devices as Supplier Seeks $4.3 Billion IPO
Updated
Updated · CNBC · Jul 8
Apple Tests CXMT DRAM for China Devices as Supplier Seeks $4.3 Billion IPO
3 articles · Updated · CNBC · Jul 8
Summary
Apple has started testing DRAM chips from ChangXin Memory Technologies for devices sold in China and is lobbying Washington to allow broader use of the Chinese supplier's products.
CXMT sits at the center of Beijing's push for a self-sufficient AI and memory supply chain, with at least 15 state-owned shareholders holding 36% and an IPO planned to raise at least 29.5 billion yuan.
The company is already the world's fourth-largest DRAM maker, and SemiAnalysis expects its market share to climb to 15% by 2028 from about 11% last year as new lines open in Hefei, Shanghai and Beijing.
Apple's move revives a politically sensitive issue after U.S. lawmakers pushed back in 2022 over Chinese memory sourcing, even as Washington has so far avoided blacklisting CXMT and more than 100 other flagged firms.
Analysts say CXMT's output is largely pre-committed, limiting any near-term price shock, but rivals fear a longer-term replay of China's solar and EV playbook that could squeeze global memory makers.
With China's state-backed chip giant expanding, are global tech companies heading for a devastating price war?
As U.S. sanctions fuel China's self-reliance, is Apple's new partnership a strategic risk or a necessary compromise?
Apple’s Memory Crunch: Navigating a 40–50% DRAM Price Surge, AI Demand, and Geopolitical Barriers in 2026–2028
Overview
Apple is taking urgent steps to secure its supply of DRAM chips by seeking to purchase memory from ChangXin Memory Technologies (CXMT), even though CXMT is a blacklisted entity. This move is driven by surging demand for memory, especially for advanced features like custom Siri voice and enhanced dictation, which require more RAM and will only be available on newer devices. As Apple packs more RAM into its products, the need for a stable and sufficient memory supply grows, directly impacting its product strategy and highlighting the economic pressures caused by the global memory crunch.