{
  "id": 218379,
  "title": "Apple's Bid to Use Chinese Chipmaker as Leverage Backfires",
  "url": "https://urgent.news/2026/08/06/apples-bid-to-use-chinese-chipmaker-as-leverage-backfires",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-06T11:53:54.000Z",
  "source": {
    "name": "MacRumors",
    "slug": "macrumors",
    "url": "https://www.macrumors.com/2026/08/06/apples-bid-to-use-chinese-chipmaker-backfires/"
  },
  "original_language": "en",
  "account": "Apple's attempt to leverage Chinese memory maker CXMT against Samsung Electronics and SK Hynix has failed, with the two Korean chipmakers holding more pricing power than ever, according to DigiTimes. The report, citing South Korean and Chinese trade press, reveals that Apple's exploration of CXMT and YMTC as potential DRAM suppliers was tested in the face of a severe memory shortage driving up the cost of Apple devices. Apple had hoped a credible Chinese alternative would force Samsung and SK Hynix to lower their prices, a tactic it had successfully employed in the past with OLED suppliers and contract manufacturers. However, CXMT is restricted by U.S. export controls from using EUV lithography tools, forcing it to rely on older DUV equipment, which requires approximately 30% more wafer starts to produce the same output. This increased cost means matching Samsung and SK Hynix's prices is essentially the lowest CXMT can go, rather than offering a discount, rendering Apple's push for a lower LPDDR5X quote unsuccessful. Consequently, Apple's main point of leverage was neutralized, leaving Samsung and SK Hynix with less pressure to reduce their own prices. The setback is compounded by the fact that Chinese device makers Huawei and Xiaomi have already secured most of CXMT's output through long-term, high-price contracts, making the company less reliant on Apple's business.",
  "summary": "Apple's attempt to use Chinese memory maker CXMT as leverage against Samsung Electronics and SK Hynix has backfired, with the two Korean chipmakers ending up with more pricing power rather than less, DigiTimes reports, citing South Korean and Chinese trade press. This year, Apple has explored CXMT and fellow Chinese chipmaker YMTC as potential DRAM suppliers, and had progressed to testing CXMT's…",
  "key_points": [
    "Apple's attempt to use CXMT as leverage against Samsung and SK Hynix failed.",
    "CXMT restricted by U.S. export controls from using EUV lithography tools.",
    "CXMT reliant on older DUV equipment, requiring 30% more wafer starts."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}