Apple Inc (NASDAQ:AAPL) is reportedly evaluating memory chips produced by China’s CXMT Corp for use across products including iPhones and MacBooks as surging artificial intelligence investment places increasing pressure on global memory supplies.
According to The Wall Street Journal, Apple has also held preliminary discussions with CXMT about potentially sourcing memory components for devices sold within China, citing people familiar with the matter.
Any deeper commercial relationship could face political and regulatory complications, however, given existing U.S. restrictions governing technology transfers to the Chinese semiconductor manufacturer.
Memory shortage puts pressure on Apple costs
Apple has been increasing prices for products in markets around the world, pointing partly to rising memory costs as AI companies compete with consumer electronics manufacturers for increasingly constrained supplies.
Adding CXMT to its supplier network could potentially provide Apple with another source of memory components and help diversify procurement at a time when demand from artificial intelligence infrastructure is tightening availability across the semiconductor industry.
However, CXMT may have limited ability to provide immediate relief. The Chinese manufacturer has reportedly already allocated its available production capacity for 2026, leaving little room to accommodate significant new international orders.
Cost advantages are also uncertain. CXMT’s memory products can reportedly be priced at similar or even higher levels than components supplied by established global manufacturers including Micron Technology, SK Hynix and Samsung Electronics.
U.S. export restrictions could limit Apple-CXMT cooperation
Regulatory restrictions represent another potential obstacle. U.S. export controls prevent American companies from transferring certain technologies to CXMT, potentially limiting Apple’s ability to collaborate with the manufacturer on customised memory products.
However, existing rules do not necessarily prevent Apple from purchasing standard components. Export-control lawyer Kevin Wolf told The Wall Street Journal that off-the-shelf memory products can still be used under the current restrictions.
This distinction could provide Apple with a route to sourcing CXMT components without engaging in the deeper technical collaboration normally required for customised semiconductor development.
AI memory crunch weighs on smartphones and PCs
The global shortage of memory components is already beginning to affect consumer electronics shipments. Counterpoint Research data cited by The Wall Street Journal showed worldwide PC shipments declined 4% year-on-year during the second quarter, while smartphone shipments fell 11%.
At the same time, CXMT is rapidly expanding its position in the global memory industry. The Chinese company’s revenue increased more than eightfold during the second quarter, while its share of worldwide DRAM revenue reached 7%.
CXMT is continuing to invest in additional manufacturing capacity and reportedly aims to more than double production by 2028.
For Apple (NASDAQ:AAPL), evaluating CXMT provides another potential option for navigating an increasingly constrained global memory market. However, capacity limitations, uncertain pricing advantages and U.S. technology restrictions mean the Chinese supplier may offer diversification rather than an immediate solution to the supply pressures created by the AI boom.