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Apple is reportedly considering a Chinese memory supplier, CXMT, to broaden its options in an increasingly complex supply chain landscape. CXMT, a relatively smaller player compared to industry leaders such as Micron, Samsung, SK Hynix, and Kioxia, is expanding its production capabilities and venturing into high-bandwidth memory technologies.

In a recent statement, CXMT expressed willingness to collaborate with major customers globally, highlighting its competitiveness in terms of performance, quality, and reliability. The company is currently constructing two additional fabrication plants in Shanghai and Hefei, which could potentially increase its output to 600,000 wafers per month by 2026, alongside its existing three fabs.

The potential partnership with Apple comes at a time when the company is bolstering its DRAM capacity, with an expected monthly production of 300,000 300mm DRAM wafers by year-end. CXMT's focus on LPDDR5X, LPDDR6, and HBM3 memory technologies underscores its ambition to compete with established suppliers in speed, consistency, and energy efficiency.

However, CXMT's current output is largely committed through 2027, with fabrication plants operating at nearly full capacity. Apple's estimated memory requirement for China-related devices is approximately 600 million GB, suggesting that any collaboration with CXMT would likely be limited initially.

The talks between Apple and CXMT also carry significant political implications, particularly in the context of U.S.-China relations. The Trump administration is reportedly considering whether companies like Apple and YMTC should be allowed to purchase memory from CXMT as part of negotiations with China ahead of President Xi Jinping's upcoming visit to the US.

For Apple, diversifying its memory supply could enhance its bargaining power and reduce reliance on a select few suppliers. For CXMT, securing a contract with Apple would validate its progress in becoming a formidable player in the global memory market.