Apple Tests Chinese CXMT Chips, Considers Adoption Amid U.S. Regulatory Pressure

Chinese Chips Under Consideration Amid AI-Driven Memory Shortage
U.S. Regulations and Political Backlash Remain Key Variables

Apple is reportedly testing chips from Changxin Memory Technologies (CXMT), China's largest DRAM manufacturer, in products such as the iPhone and MacBook as a response to the global memory semiconductor shortage triggered by the artificial intelligence (AI) boom. As the U.S. government strengthens regulations on Chinese semiconductor firms, Apple's push to introduce Chinese-made memory chips is expected to become a new source of contention in the ongoing U.S.-China technology conflict.

On August 9 (local time), The Wall Street Journal (WSJ) reported, citing sources familiar with the matter, that Apple is testing CXMT's memory chips in various product lines, including the iPhone and MacBook. Apple has been conducting preliminary negotiations to secure component supply, considering the inclusion of CXMT chips in select products sold in China.

It is also reported that Apple is seeking the White House's approval for the deal with CXMT in order to avoid political controversy. Previously, Apple asked the Trump Administration to permit the use of memory chips from Chinese companies such as CXMT and Yangtze Memory Technologies (YMTC) in products sold outside the United States.

However, U.S. export control regulations are restricting Apple's use of CXMT chips. U.S. companies are prohibited from transferring technology to CXMT or sharing detailed product specifications. Since Apple generally uses custom-designed memory chips to optimize product performance, it finds it difficult to request tailored chip designs from CXMT.

Kevin Wolf, a partner at Akin Gump and an export control expert, explained that current regulations allow Apple to purchase CXMT's off-the-shelf memory products and negotiate prices. However, according to the WSJ, using standard chips may require Apple to change certain aspects of its existing product designs.

The reason Apple is even considering Chinese memory chips stems from the intensifying global memory shortage caused by increased AI investment. Leading manufacturers such as Samsung Electronics, SK hynix, and Micron have ramped up the production of high-value memory for AI data centers, resulting in a supply that cannot keep pace with demand for general-purpose memory used in smartphones and PCs.

U.S. Political Circles Oppose Apple’s Move, Seeking to Contain Chinese Semiconductor Industry

U.S. political circles are opposed to Apple's adoption of Chinese memory chips. The U.S. Department of Defense identified CXMT as a company linked to the Chinese military, listing it under Section 1260H of the National Defense Authorization Act as a Chinese military enterprise. The Department of Defense has stated that CXMT is directly connected to China's Ministry of Industry and Information Technology (MIIT).

Being included in the 1260H list does not immediately prohibit civilian transactions with U.S. firms. However, it could restrict contracts or research funding with the Department of Defense and serves as a signal that future investments and trade restrictions may be tightened.

Some U.S. policymakers are concerned that if leading global tech companies such as Apple place large-scale orders with CXMT, it could enable Chinese firms to bolster their competitiveness by leveraging American technology and capital. There is particular concern that the growth of Chinese firms could pressure the U.S. semiconductor industry, especially as U.S. memory company Micron is building new factories in Idaho and New York.

In contrast, global PC manufacturers have already expanded their use of CXMT products. HP and Acer have begun using CXMT memory in certain products sold outside the United States and are reportedly seeking to secure additional supply for next year.

Nevertheless, CXMT is unlikely to immediately resolve Apple's memory shortage. CXMT is reportedly running its production capacity at full speed this year, leaving it with limited ability to supply new overseas customers. Its technological level is also considered to be behind that of industry leaders like Samsung Electronics, SK hynix, and Micron. CXMT plans to more than double its production capacity by 2028.

This content was produced with the assistance of AI translation services.