Apple Tests CXMT Memory Chips for iPhones and MacBooks as AI-Fueled Supply Crunch Intensifies

Apple is testing Chinese memory chips as the AI shortage bites

Turning to CXMT for iPhone and MacBook memory would ease a supply crunch, but it steers Apple straight into a security fight in Washington. Apple is quietly looking to China to solve a very expensive problem. The company is testing memory chips from CXMT for use in iPhones and MacBooks, according to a Wall Street Journal report, as it scrambles to ease a component shortage that the AI boom has made acute. The appeal is straightforward once you follow the money. CXMT is China's largest chipmaker by market value, and its memory is cheaper than what the established suppliers charge, which matters enormously at a moment when the price of memory has been climbing fast. That price pressure is the real driver here. Demand from AI data centres has swallowed so much memory that the chips that once went into cheap phones are being diverted to servers instead, squeezing everyone who builds consumer hardware, Apple included. For now, the ambitions are modest and carefully bounded. The talks are said to be at an early stage, with any CXMT components aimed initially at devices sold within China, a limited first step rather than a wholesale switch of suppliers. Apple would also not be the pioneer here. HP and Acer already use CXMT memory in some devices sold outside the United States, so the Chinese firm has a track record with big Western brands, even if none carries quite the symbolic weight of Apple. CXMT, for its part, is clearly building for this moment. The company has been expanding aggressively, weighing a second memory plant in Beijing, and it is closing in on next-generation LPDDR6 production that would put it in direct competition with Samsung and SK Hynix in premium phone memory. Here, though, is where the commercial logic runs into politics. Sourcing memory from a Chinese national champion is exactly the kind of move that alarms Washington, and Apple has already been navigating that minefield rather than ignoring it. In fact, the company has been seeking permission first. Apple has been lobbying US officials for approval to buy from CXMT as memory prices quadrupled, an unusually public acknowledgement that the decision is as much geopolitical as it is technical. Not everyone in Washington is inclined to grant it. US senators have warned Apple off Chinese memory chips, citing security worries and the risk of deepening American reliance on a strategic rival for a foundational component. Those concerns cut to a genuine tension in Apple's position. The company has spent years trying to diversify away from China, yet the economics of the memory crunch keep pulling it back toward the very suppliers its home government would prefer it avoid. The caveats are worth stating plainly, too. Reuters could not independently verify the report, and neither Apple nor CXMT responded to requests for comment, so this remains, for now, a reported plan rather than a confirmed deal. Even as a plan, though, it is telling. That a company as image-conscious and politically exposed as Apple is even testing Chinese memory shows how painful the shortage has become, and how far the AI build-out's appetite reaches down the supply chain. It also underlines how thoroughly the memory market has been upended. For years the business was a sleepy, commoditised corner of the industry, but the scramble for chips to feed AI has turned memory into a strategic bottleneck, one that even the world's most powerful hardware company cannot simply buy its way out of at the old prices. CXMT, meanwhile, gains something valuable no matter how the talks end. Being taken seriously as a potential Apple supplier is a milestone for a company Washington has treated with suspicion, and it signals that China's memory makers are closing the quality gap that once kept them out of premium Western devices. The outcome will hinge on forces beyond Apple's control. If prices keep rising and Washington relents, CXMT could win a marquee customer; if the security hawks prevail, Apple will be left paying a premium for the reassurance of keeping its memory out of Chinese hands.

Apple Tests China's CXMT Memory Chips for iPhones and Macbooks Amid AI-Fueled Supply Crunch: Report - App

Apple Explores CXMT Chips Amid Memory Shortage Apple has held preliminary discussions with CXMT, China's largest memory-chip maker by market value, about potentially supplying components for some devices sold in China, the Wall Street Journal reported on Sunday, citing people familiar with the matter. The move comes as AI data centers drive surging demand for memory chips, putting pressure on supplies available for consumer electronics. Apple is looking for additional sources as it faces the possibility of tighter memory availability. Apple did not immediately respond to Benzinga's request for comment. CXMT may offer limited relief for Apple, as the Chinese chipmaker has maxed out its capacity this year, leaving little room for new international customers, the report added, citing sources. AI Boom Puts Pressure on Apple's Memory Supply Analyst Ming-Chi Kuo previously said Apple's interest in CXMT is primarily about securing supply rather than cutting costs. He expects AI infrastructure demand to further widen the memory shortage through 2027, potentially shifting as much as 20% of memory capacity away from consumer electronics. Kuo has also warned that Apple could receive 10% to 20% fewer A20 chips between the second half of 2026 and the first quarter of 2027 due to tight LPDDR memory supplies. Apple has already raised prices on several products, including the MacBook Neo, MacBook Air and iPad models, amid tighter memory and storage supplies. CXMT Gains Importance Despite US-China Chip Tensions CXMT has emerged as a major player in China's semiconductor push and is reportedly expanding its production capacity. Reuters previously reported that the company is considering a second memory-chip plant in Beijing. CXMT also relies on equipment from Dutch semiconductor machinery maker ASML Holding NV (NASDAQ:ASML), including deep ultraviolet lithography systems. The potential use of CXMT chips could draw attention in Washington, where Chinese semiconductor companies face growing scrutiny. Apple has previously faced criticism from U.S. lawmakers over plans to use Chinese-made memory chips. Price Action: Apple closed at $313.33 on Friday, up 0.29%, according to Benzinga Pro Benzinga Edge ranks Apple in the 98th percentile for Quality, while the stock continues to show a positive price trend across the short-, medium- and long-term. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

CXMT market impact on Micron, SK Hynix, and Samsung By Investing.com

Investing.com -- Apple quietly testing CXMT's memory chips lands like a grenade in a market already rattled by CXMT's +466% IPO debut -- and it confirms that China's memory ambitions are no longer a distant threat but a present-tense competitive reality. For Micron, SK Hynix, and Samsung, this isn't just headline risk: it's a credibility test for the AI-driven upcycle thesis that has powered gains over the past year. The CXMT Playbook, Decoded The Aug 9, 2026 report reveals Apple is testing CXMT Corp (688825) memory across iPhones and MacBooks, with early discussions about CXMT supplying devices sold specifically in China. Read more Three structural realities define what this actually means: The off-the-shelf vs. customized distinction matters enormously here -- Apple can test standard DRAM, but the high-margin, high-performance chips that underpin AI workloads remain protected territory for now. Who Gets Hit Hardest? As of the prior close (Fri, Aug 7, 2026 at 3:59 PM EDT): Screener values are snapshots and may lag live prices. SK Hynix bears the most pain -- down nearly -18% since its IPO, making it the market's designated loser in this narrative. Samsung isn't far behind. Micron shows relative resilience, thanks to its AI/HBM exposure and contractual protection. Micron's Moat Holds (For Now) Context that the headlines skip: Micron holds >$100B in multi-year supply agreements with price floors that lock in >61% gross margins. That's not a company that loses an Apple relationship overnight. * HBM advantage: CXMT cannot supply High Bandwidth Memory under current U.S. export rules -- the chip type powering AI accelerators is off-limits. Micron's HBM exposure is precisely why it fell only -2.3% when WDC and SanDisk fell -13% and -6.6% respectively on Aug 6. Read more * Analyst conviction remains: Citi cut its Micron target to $1,150 from $1,400 (still Buy), while KeyBanc holds a $1,750 target. ThinkEquity set a $900 target applying normalized EPS. Read more The Bear Case Isn't Imaginary Even with moats, the CXMT trajectory demands attention: * CXMT's revenue surged 8x in Q2 2026, reaching 7% global DRAM revenue share -- from near-zero * It targets ~15%+ share as wafer capacity scales to 600K by 2030 * Citi now projects DRAM prices decelerating QoQ for the next four quarters, peaking in Q2 2027 -- then turning negative * Apple's test signals intent: today it's China-only devices, tomorrow it could be a broader supply diversification lever -- especially if geopolitical tensions over Taiwan escalate The Bigger Picture Bull case: AI memory demand is so vast (Citi projects HBM capacity per AI system rising +434% as GPU counts scale) that CXMT is adding capacity to an expanding pie, not stealing it. The upcycle, per Citi, is still in early stages. Read more Bear case: The CXMT IPO raised $8.6B -- Asia's largest semiconductor IPO of 2026 -- giving it firepower to subsidize pricing aggressively. If CXMT reaches 15-20% DRAM share by 2030, the pricing environment looks markedly different. The Apple validation, even in testing form, accelerates customer perception that CXMT is a credible alternative. The takeaway: This news is a medium-term warning shot, not an immediate revenue threat. Micron's AI/HBM positioning gives it the best insulation. SK Hynix's YTD performance suggests the market is already pricing in significant competitive erosion. Samsung, caught between CXMT's commodity pressure and its own HBM ramp struggles, faces the most complex competitive environment. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.