Apple is testing memory chips from China's CXMT across iPhones and MacBooks while seeking White House approval to use them in China-market products, as the tech industry faces an AI-driven memory shortage.
The move faces significant political headwinds: a bipartisan group of US senators discouraged Apple from pursuing Chinese chips in July as Washington escalated technology restrictions on Beijing.
CXMT, despite being a major Chinese company following its July IPO, lags "two to three generations" behind established chipmakers like SK Hynix, Samsung, and Micron.
What happened
Apple is testing memory chips from China's CXMT in iPhones and MacBooks, and is seeking White House approval to use CXMT chips in products sold in China, according to The Wall Street Journal.
Why it matters
Apple raised prices two months ago due to chip costs, signaling pressure from an AI-induced memory shortage. However, a bipartisan group of US senators wrote in July to discourage Apple from pursuing Chinese chips, as Washington tightened curbs on Beijing's tech, making approval uncertain.
What to watch
CXMT, one of the most valuable mainland-listed companies following its July IPO, remains "two to three generations" behind competitors like SK Hynix, Samsung, and Micron, according to an analyst, suggesting the chips may not yet match performance standards of established suppliers.
Apple is testing memory chips manufactured by China's CXMT across multiple product lines, including iPhones and MacBooks, according to reporting by The Wall Street Journal. The move reflects the tech industry's struggle with an AI-induced memory shortage that has already moved Apple to raise prices two months ago due to chip costs.
Apple is actively seeking approval from the White House to use CXMT chips in products sold specifically in China. However, this effort faces significant political resistance. A bipartisan group of US senators wrote to Apple in July discouraging the company from pursuing Chinese chips, as Washington moved to increase curbs on Beijing's tech capabilities ahead of a planned summit next month. This legislative pressure suggests the approval Apple seeks may prove difficult to obtain.
CXMT itself is one of the most valuable mainland-listed companies following its July IPO, reflecting China's ambitions in semiconductor manufacturing. However, the company has substantial technological ground to cover: according to an analyst speaking to CNBC, CXMT remains "two to three generations" behind established leaders like SK Hynix, Samsung, and Micron. This gap means that even if political approval were granted, the chips may not yet meet Apple's performance standards for high-end products, creating a separate technical constraint on any broader adoption.
Apple's testing of CXMT memory chips reflects mounting pressure from an AI-induced shortage that has already prompted price increases across its product line. The company raised prices two months ago explicitly due to chip costs, signaling that supply constraints are real and immediate. By seeking White House approval for CXMT chips in China-market products, Apple is attempting to navigate both supply scarcity and geopolitical restriction—a delicate balance that underscores how semiconductor dependencies have become entangled with US-China technology policy.
The political obstacle is substantial. A bipartisan group of US senators actively discouraged Apple from this path in July, timed to broader Washington efforts to tighten curbs on Beijing's tech capacity ahead of next month's summit. This signals that the White House approval Apple is requesting faces skepticism at the legislative level. Meanwhile, CXMT's own technological position—"two to three generations" behind SK Hynix, Samsung, and Micron—means that even if political approval were granted, the chips may not yet satisfy Apple's performance or reliability requirements, creating a second constraint beyond policy.
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