Wall Street Journal: Apple Testing CXMT Memory Chips for iPhone, MacBook

Apple (AAPL-US) is testing memory chips from China's ChangXin Memory Technologies (CXMT) in its product lines such as iPhones and MacBooks, aiming to alleviate memory shortages triggered by the surge in artificial intelligence (AI) demand.

According to a report by The Wall Street Journal on the 9th (Sunday), sources revealed that Apple has initiated preliminary discussions with China's largest chip manufacturer, CXMT, regarding component supply, with the goal of using these chips in certain devices sold in China.

Apple is actively seeking approval from the White House before reaching any agreement with CXMT.

However, CXMT is not a panacea for Apple. Sources indicated that CXMT has already reached its production capacity limit this year, leaving almost no room to onboard new international customers.

Sources mentioned that the prices of many CXMT products are now comparable to those of Micron (MU-US), SK Hynix, and Samsung Electronics, and occasionally even higher. They said this pricing strategy is partly due to CXMT's tight supply and higher production costs compared to foreign competitors.

This move comes as Apple recently raised its product prices, attributing the increase to rising memory chip costs driven by massive demand from AI companies. Securing a stable supply from Chinese manufacturers could help Apple gain greater leverage in managing cost pressures.

Under U.S. federal regulations, American companies are prohibited from sharing technology with CXMT, including technical exchanges on chip specifications—typically a necessary step in producing customized chips for Apple. This restriction effectively hinders Apple from procuring customized chips from CXMT.

Some U.S. policymakers worry that if CXMT secures orders from top American firms, it could gain access to U.S. expertise and more funding to advance its technology. They argue this could assist Beijing's military development and undermine Micron.

PC manufacturers HP and Acer have already begun using CXMT chips in devices sold outside the U.S. market to mitigate supply shortages.