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Apple's Bid to Source Memory From China's CXMT May Collapse as Beijing Prioritizes its Own Chip-Starved Firms
Apple's initiative to procure memory chips from China's CXMT is facing potential collapse as the Chinese government prioritizes local chip-starved companies over foreign orders. Despite reports of CXMT reaching competitive parity with South Korea’s HBM3 production, analysts believe that production capacity shortages and domestic catering obligations will hinder CXMT's ability to supply the international market. The uncertainty surrounding US government approvals further complicates Apple's situation.
MonitorConfidence: MediumShort term horizonGeopolitical risk: High
Published 29 Jun 2026, 20:20 UTC3 min read
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Summary
TL;DR
- Apple seeks US government approval to source chips from CXMT amidst memory shortages.
- CXMT designated as a military company by the Pentagon, complicating procurement.
- Focus shifted to DDR memory production for Chinese domestic needs.
- Local firms expected to benefit from limited DRAM availability.
- Analysts do not expect CXMT to alleviate global supply pressures.
Interesting facts
- CXMT is reportedly involved in a long-term memory agreement with Tencent worth nearly $3 billion.
- Recent reports suggest Google is also considering CXMT's memory chips.
- The shift in China's memory production strategy is intensifying DRAM shortages locally.