Apple is reportedly in the process of testing memory chips made by Chinese company CXMT across its lineup of devices, including in iPhones and MacBooks, as it looks at options to address the shortage of memory chips.
The Wall Street Journal on Sunday reported that Apple has held early talks with CXMT about the company providing chips that would be used in devices sold in China, citing people familiar with the matter.
Apple is hoping to receive approval from the White House for the arrangement, which could face scrutiny under rules that aim to block U.S. firms from transferring technology and sensitive data to Chinese companies, including CXMT.
The Journal reported that while the rules allow Apple to buy off-the-shell components from CXMT, it couldn’t order custom chips built to the company’s specifications. If the arrangement moves forward, Apple may be forced to redesign parts of its products sold in the Chinese market that would use standard CXMT chips.
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Laptop makers HP and Acer have obtained limited quantities of memory chips and are looking to lock in additional supplies for next year, the Journal reported. The deals with HP and Acer were previously reported by Nikkei Asia.
Apple has raised prices on its products in markets around the world, which it has attributed to surging memory chip costs amid a shortage caused by demand from artificial intelligence (AI) companies.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 308.26 | -4.80 | -1.53% |
CXMT is the largest chipmaking company in China based on market value, and the report noted it has emerged as the world’s fastest-growing supplier of DRAM memory chips.
Reuters previously reported that the firm was considering building a second memory chip plant in Beijing to expand its output, as the Journal’s report from the weekend noted that CXMT maxed out its production this year.
The company is giving priority to domestic tech companies in China and is aiming to more than double its current production capacity by 2028, the Journal reported.
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U.S. companies are restricted in their dealings with CXMT because it’s among the companies on a Pentagon list due to links with the Chinese military.
The list indicates that CXMT is directly and indirectly affiliated with the Chinese government’s Ministry of Information Technology, while it’s also indirectly linked to an agency that manages and supervises state-owned enterprises.
FOX Business reached out to Apple and CXMT for comment.
Reuters contributed to this report.
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