Apple is reportedly testing memory chips from China’s CXMT for iPhones and MacBooks as it explores ways to ease AI-driven component shortages.
Amid the changing dynamics of the tech industry, Apple has been testing memory chips from China’s CXMT across different product lines, including iPhones and MacBooks, to help mitigate a component shortage fueled by the AI boom, according to The Wall Street Journal on Sunday.
Apple has held early talks with CXMT, one of China’s largest chipmakers by market value, about supplying memory components, with the goal of using them in some devices sold in China.
The tech giant has held preliminary discussions with CXMT about becoming a supplier and incorporating its chips into devices sold in the Chinese market. Apple has been waiting for approval from the White House before moving forward with any deal involving the Chinese firm.
The push comes as Apple raises prices on its products worldwide, a move it has said is being driven by surging memory chip costs amid heavy demand from AI companies. Securing a supply line from a Chinese manufacturer could give Apple additional leverage to offset those cost pressures.
Federal Rules Against Chinese suppliers
An extensive set of federal rules bars US companies from sharing technology with CXMT, including the regular transactions and movement that would take place if Apple gets its specialized chips produced by CXMT. The rules do, however, allow Apple to purchase off-the-shelf CXMT components.
More from TechUS policymakers have voiced concerns that orders and demand from US companies could give CXMT additional expertise and capital to advance its technology, potentially benefiting China’s military and weakening Micron Technology.
CXMT is not a full-fledged solution to Apple’s supply issues. Amid tight supplies, CXMT has already maxed out its production capacity for this year, leaving little room for new customers. HP and Acer have already secured limited volumes from CXMT and are working to lock in larger supplies for the coming years.
Rising memory prices have already started to weigh heavily on shipments of PCs and smartphones. CXMT has recently become one of the fastest-growing suppliers of DRAM, one of the most common types of memory chips. Its second-quarter revenue is now more than eight times higher than earlier levels, driven by strong demand and continued price increases.
