Apple Taps China's CXMT for Memory Chips Amid AI-Driven Shortage

Apple is facing pressure to find memory chip suppliers in China's CXMT due to a shortage driven by AI demand and rising prices. The shortage has led Apple to test memory chips from CXMT, which could be used in iPhones and MacBooks. However, there are technical and political obstacles to overcome.

The US government has restrictions on sharing technical specifications with CXMT, which the Pentagon has linked to China's military. This effectively blocks Apple from ordering custom chips designed by CXMT. But Apple could still buy off-the-shelf parts from CXMT and negotiate prices.

Some US policymakers worry that orders from American firms would give CXMT valuable know-how and funding, potentially undercutting Micron (MU).

CXMT has reached its capacity this year and is prioritizing domestic clients like ByteDance and Tencent. Its technology still lags behind other top suppliers such as Micron, SK Hynix (SKHY), and Samsung.