Apple Taps Chinese Memory Chip Maker Amid Surging AI Demand

Apple is exploring memory chip options from Chinese manufacturer CXMT as prices for chips continue to surge, driven by intense demand for artificial intelligence. The Cupertino-based tech giant must secure White House clearance before finalizing any supply agreement with CXMT.

The U.S. export restrictions prohibit technology collaboration between American corporations and CXMT, limiting Apple's potential partnership to purchasing ready-made products rather than customized chip development processes. This constraint is particularly significant as Apple routinely collaborates with established suppliers like Micron, SK Hynix, and Samsung.

CXMT has recently completed its listing on the Shanghai stock exchange and has emerged as mainland China's highest-valued publicly traded corporation, reporting second-quarter revenue exceeding eight times its year-earlier performance. The Pentagon has designated CXMT as an entity believed to maintain connections with China's military apparatus, prompting apprehension from U.S. lawmakers about potential financial resources and indirect exposure to American technological knowledge.

Supply constraints also pose a tangible obstacle for Apple, as CXMT has reached maximum production capacity for the current year, leaving minimal availability for new international clients. Computer manufacturers HP and Acer have already obtained limited quantities and are attempting to secure increased supply commitments for 2027.