Apple tests CXMT memory chips as AI boom fuels global supply crunch, WSJ reports

Apple Inc is piloting memory chips produced by China's CXMT Corp, as a surge in artificial intelligence usage strains the global market for memory supplies, The Wall Street Journal revealed on Sunday. Reports from sources familiar with the matter suggest Apple has initiated preliminary talks with CXMT concerning possible memory component supply for devices sold within China. However, any potential partnership between the two firms could face political hurdles due to U.S. technology export regulations.

The AI boom is driving up costs for Apple, prompting the tech giant to hike prices for its products globally. Apple's reliance on Chinese-made components could alleviate some of the pressure caused by the tight memory supply situation. Yet, CXMT may not offer an immediate solution, as the company is already operating at full capacity for 2026. Furthermore, CXMT's memory products might cost the same or more compared to those offered by established suppliers like Micron Technology, SK Hynix, and Samsung Electronics.

U.S. export rules further limit Apple's ability to collaborate with CXMT, barring American companies from transferring technology to the Chinese supplier. Nonetheless, the use of off-the-shelf components under current export control rules remains possible. CXMT's revenue grew more than eightfold in the second quarter, and its global DRAM revenue share reached 7%. The company is also planning to expand its production capacity and aims to more than double its output by 2028.