Apple is evaluating memory chips produced by China’s ChangXin Memory Technologies (CXMT) for potential use in devices sold within China. The move, reported by the Financial Times, signals the company’s interest in diversifying its supplier base even as it actively lobbies US officials for broader permission to source from the firm.
Navigating a sensitive regulatory landscape
CXMT is listed on the Pentagon’s 1260H roster, a directory of entities the US Department of Defense considers linked to the Chinese People’s Liberation Army. The listing process began in May 2025, when the Commerce Department moved to blacklist CXMT alongside units of Semiconductor Manufacturing International Corp and Yangtze Memory Technologies, part of a push to tighten export controls on advanced chip technology. While Reuters noted that Washington briefly paused adding CXMT and other firms in mid-June to avoid heightening trade friction with Beijing, the Defense Department’s latest published version of the list includes the company.
Because the 1260H restriction binds the Defense Department rather than private enterprises, Apple is not legally barred from doing business with CXMT. Nonetheless, the company approached the Commerce Department in June seeking clearance to purchase DRAM from the Chinese firm and has continued pressing for approval.
A fast-growing player in global memory
Once a relatively obscure, loss-making operation, CXMT gained momentum when a worldwide memory shortage boosted demand for its chips. It has since grown into the fourth-largest DRAM producer globally, trailing Samsung, SK Hynix and Micron, and counts 15 state-owned shareholders among its backers. The company is also reported to be planning a public listing aimed at raising $4.3 billion.
Supply chain pressures and pricing consequences
Apple’s current memory suppliers—Micron, Samsung and SK Hynix—have all been stretched by surging demand from AI data centers, which continues to pull supply away from consumer electronics. Adding CXMT would give Apple a fourth source and help insulate it from a tightening supply chain. That pressure was reflected in sharp price increases Apple implemented across its Mac and iPad lines in June, with some models rising between 17 percent and 25 percent. The company cited the global memory shortage, driven by three quarters of steep price gains amid booming AI infrastructure spending, as the reason for the hikes.
Political pushback from Washington
The prospect of Apple sourcing chips from a blacklisted Chinese manufacturer has already prompted criticism. Representative John Moolenaar, who leads congressional efforts examining China’s geopolitical influence, has called the potential partnership a grave mistake. Apple has not commented publicly on the CXMT testing report, and the US government has not yet indicated whether it will approve a formal sourcing arrangement.
Sources: www.ft.com, www.reuters.com, unsplash.com