Companies: Apple apparently checks use of Chinese chips - also for iPhones

New York. According to a media report, Apple is examining the use of memory chips from the Chinese manufacturer CXMT. The US group is testing the chips for various product lines, including iPhones and MacBooks, as reported by the Wall Street Journal on Sunday, citing people familiar with the matter. Apple is reacting to rising costs for memory chips, which have become scarce and expensive due to high demand from AI companies.

Apple and CXMT were initially not available for comment when contacted by Reuters. According to the report, Apple has held initial talks with CXMT about supplying components for devices to be sold in China. Apple hopes to obtain approval from the US government to alleviate political concerns. However, significant hurdles stand in the way of such a deal. US regulations prohibit the transfer of technology to CXMT, which prevents Apple from ordering customized chips as usual.

The group could only use standard components, which may require a redesign of parts of its products. Furthermore, according to the report, political resistance is emerging in Washington: some US politicians fear that Apple orders will give the Chinese group access to American know-how and thus also strengthen Beijing's military. The US Department of Defense lists CXMT on a list of companies with alleged connections to the Chinese military.

A potential order from Apple would be a significant success for CXMT and an important step in China's striving for technological independence. CXMT is the fourth-largest manufacturer of so-called DRAM memory chips worldwide, which are used as working memory in devices from smartphones to data centers. However, the market is dominated by South Korean conglomerates Samsung and SK Hynix, as well as Micron from the US, which together account for a share of around 90 percent.

The Chinese company is pushing its expansion with high pressure and plans new factories to double its production capacity. After a spectacular stock market debut at the beginning of August, CXMT rose to become the most valuable listed company in China.