Apple Begins Testing Controversial Chinese Memory Chips
Apple is reportedly testing DRAM memory chips from China's state-backed ChangXin Memory Technologies (CXMT). This follows earlier discussions with both CXMT and Yangtze Memory Technologies (YMTC) about sourcing memory. Apple has progressed to technically validating CXMT's chips, a step before supplier approval. The company has not yet committed to commercial use of these chips. Apple is also lobbying US tech companies to seek Washington's approval for broader use of CXMT products. CXMT has become the fourth-largest DRAM producer globally and is expected to increase its market share. Qualifying CXMT now would allow Apple to access this production capacity quickly. Recent surges in DRAM prices have influenced Apple's pricing strategy. Having a fourth qualified supplier would provide Apple with negotiation leverage and potential protection against future price hikes. Both CXMT and YMTC are linked to the Chinese military by the Pentagon, but this primarily affects defense contracts. YMTC faces stricter restrictions due to being on the Commerce Department's Entity List, requiring export licenses for US companies. Apple seeks assurance that CXMT won't face similar restrictions, which would block supply. A previous attempt to use Chinese memory suppliers in 2022 was halted due to US objections. Apple CEO Tim Cook is reportedly pitching the idea to the administration as a way to use Chinese memory for devices sold in China, freeing up other suppliers for global markets. The administration's internal consensus on this matter remains uncertain.