Apple Reportedly Testing Chinese CXMT Memory! How Will It Affect Samsung, SK Hynix, and Micron?

As artificial intelligence (AI) server demand surges, pushing DRAM prices higher and triggering global memory supply shortages, Apple (AAPL-US) is reportedly seeking new suppliers beyond Samsung Electronics (KR005930), SK Hynix (000660KS), and Micron Technology (MU-US), and is testing DRAM chips from China's ChangXin Memory Technologies (688825-CN)—a potential new variable in the global DRAM market.

According to The Wall Street Journal, Apple is trialing memory chips produced by CXMT for its iPhone and MacBook product lines to alleviate memory shortages, with initial plans to deploy them in select models sold in the Chinese market.

Citing informed sources, the report states that both parties have initiated preliminary discussions on component supply, though neither Apple nor CXMT has officially commented on the matter.

Notably, Apple currently relies exclusively on three DRAM suppliers: Samsung Electronics, SK Hynix, and Micron.

Apple CEO Tim Cook openly acknowledged during the July 30 earnings call that having more than three DRAM suppliers would ease the current strain, describing the supply crunch as a "once-in-a-century flood."

In fact, Apple is not the first in the industry to take this step. HP (HPQ-US) and Acer (2353-TW) are reportedly already using CXMT chips in their products.

However, Apple's attempt to leverage this move to lower procurement costs appears to have failed.

According to South Korean media outlet Digital Daily, Apple attempted to negotiate more favorable DRAM pricing with CXMT but was politely rejected. CXMT insists its pricing must not fall below that of Samsung and SK Hynix—and in some cases, demands even higher prices.

Analysts suggest the reason lies in the fact that major Chinese domestic manufacturers such as Huawei and Xiaomi (01810-HK) have already locked in large portions of CXMT's production capacity through long-term contracts. Even with Apple's strong interest, CXMT has little incentive to compromise or lower prices to secure this order.

Analyst View: Limited Short-Term Impact, Long-Term Uncertainty

In terms of market share, estimates based on Q1 2025 data show CXMT holds approximately 8% of the global DRAM market, ranking fourth but still trailing behind Samsung, SK Hynix, and Micron.

Oh Hui-joon, a professor in the Department of Electrical and Electronic Engineering at KAIST (Korea Advanced Institute of Science and Technology), analyzed that CXMT's current technology level remains at the level of general DRAM, meaning its short-term impact on South Korean firms is limited.

However, he warned that if Apple's move materializes, it could become a significant catalyst for CXMT's growth, potentially evolving into a long-term competitive threat.

Notably, China's memory production capacity expansion shows no signs of slowing.

Analysts point out that China's memory industry has long been constrained by insufficient production capacity and the challenge of catching up in core technologies. If CXMT successfully raises funds through its public listing, it could strengthen R&D capabilities and accelerate capacity expansion, thereby driving the entire supply chain forward.

Yang Chao, Chief Strategy Analyst at China Galaxy Securities, also believes that CXMT's continued capacity expansion will generate substantial and stable procurement demand for upstream semiconductor equipment and materials suppliers, accelerating product verification and mass production adoption across the supply chain, thereby substantially enhancing the self-reliance of China's semiconductor supply chain.

Nonetheless, industry insiders caution that most of CXMT's production capacity for this year has already been pre-booked. Even if the collaboration with Apple is successfully finalized, it is unlikely to substantially alleviate the global memory supply crunch in the short term.