Amid mounting U.S. pressure, Apple weighs adopting Chinese memory chips from CXMT in its iPhones.

Apple's trial of CXMT memory chips

According to НВ — Техно: Apple is currently evaluating memory chips made by China's CXMT for possible use in iPhones and MacBooks intended for the Chinese market. A final decision on adopting the chips hinges on approval from U.S. authorities, The Wall Street Journal reports, citing people familiar with the matter.

Market dynamics behind the CXMT interest

CXMT, also known as ChangXin Memory Technologies, is one of China's largest memory producers and focuses on DRAM chips. The company has attracted more attention amid a global memory shortage fueled by surging demand for AI hardware. This shortage has driven up prices for chips and finished devices, adding to cost pressures across the industry. Apple has already reported increased memory expenses, and CEO Tim Cook warned that memory prices could continue rising after September.

A bipartisan group of U.S. senators urged Apple in June not to equip its devices with CXMT memory. The Biden administration has added CXMT to a list of Chinese military companies, while the Trump administration previously considered placing the firm on a trade blacklist but declined to do so this summer.

Apple is not the only company eyeing CXMT's chips: laptop makers Acer, HP, and Asus have also expressed interest. Among the measures suggested to address the memory shortfall is requiring manufacturers to set aside some output for industries outside of AI.

Apple has already raised prices on certain products, including iPads and MacBooks, to offset growing costs.

Apple's evaluation of CXMT chips highlights fiercer competition in the memory market and the strategic importance of choices shaped by trade policy.

With U.S.-China relations tense, Apple's decision could influence its supply chain and pricing approach in the region. The fact that other manufacturers are looking at CXMT also reflects a broader industry struggle with component shortages and rising costs. For U.S. tech companies, balancing access to China's market against Washington's security concerns is becoming increasingly delicate.

As Apple navigates the complexities of its supply chain, the ongoing memory chip shortage has already led to delays in shipping dates for products like the MacBook Air. This situation underscores the broader implications of the chip crisis, which not only impacts pricing but also the availability of essential devices. For more insights on how these supply challenges are affecting Apple's product timelines, check out our article on the shipping delays for the MacBook Air.