Apple Tests Chinese Memory Chips Amid Global Shortage

Apple's stock price dropped on Monday as the company tested Chinese memory chips for its iPhones and MacBooks sold in China. The move is aimed at easing memory shortages caused by strong demand from artificial intelligence.

The US restrictions may limit Apple to standard CXMT chips instead of custom parts, which could require adjusting some hardware designs. Apple wants White House approval before advancing any supply arrangement with CXMT for products sold inside China.

CXMT has become the largest chipmaker in China by market value and one of the fastest-growing global DRAM suppliers. The company plans to more than double its current production capacity by 2028 while prioritizing domestic Chinese technology companies.