AI boom Apple tests Chinese memory chips to ease supply shortage

Apple has reportedly tested memory chips made by Chinese chipmaker ChangXin Memory Technologies (CXMT) for use across products including iPhones and MacBooks.

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The Wall Street Journal reported that Apple held early talks with CXMT about supplying memory components. The company aims to use the chips in some devices sold in China, according to people familiar with the matter.

Reuters said it could not independently verify the report. Apple and CXMT did not immediately respond to requests for comment.

CXMT has become China’s largest memory-chip maker by market value. It has also emerged as the world’s fourth-largest memory-chip producer, including in dynamic random-access memory (DRAM) used in smartphones, laptops and servers.

Laptop makers HP and Acer have already started using CXMT memory chips in devices sold outside the United States, according to the Wall Street Journal. The move aims to ease pressure caused by tight supplies.

AI demand reshapes memory-chip market

Memory chips were once a relatively low-margin part of the semiconductor industry. However, the rapid expansion of AI data centres has sharply increased demand.

Tech companies are buying huge quantities of memory components for AI infrastructure. As a result, manufacturers are prioritising data-centre customers over some consumer electronics makers.

Samsung, SK Hynix and Micron remain the world’s three largest memory-chip producers. The companies have warned that keeping pace with growing demand remains difficult.

Chinese memory manufacturers have also gained greater influence over global supplies. CXMT and flash-memory producer Yangtze Memory Technologies Corp (YMTC) have invested heavily in expanding production.

The surge in demand has also pushed up prices. In some cases, Chinese companies are charging more than South Korean rivals as buyers compete for limited supplies.

Growing US-China technology tensions

CXMT and YMTC face increasing scrutiny from Washington. The Pentagon has designated both companies as Chinese military companies, citing their alleged role in China’s military-civil fusion strategy.

The companies deny the allegations. YMTC also remains on the US Entity List, restricting its access to certain US-origin technology, software and production tools.

The growing role of Chinese memory-chip makers could therefore create additional challenges for global technology companies.

Apple’s reported discussions with CXMT highlight the wider pressure facing electronics manufacturers as AI infrastructure absorbs an increasing share of the world’s memory-chip supply.