Apple Explores CXMT Chips Amid Memory Shortage

Apple has held preliminary discussions with CXMT, China’s largest memory-chip maker by market value, about potentially supplying components for some devices sold in China, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

The move comes as AI data centers drive surging demand for memory chips, putting pressure on supplies available for consumer electronics. Apple is looking for additional sources as it faces the possibility of tighter memory availability.

Apple did not immediately respond to Benzinga’s request for comment.

CXMT may offer limited relief for Apple, as the Chinese chipmaker has maxed out its capacity this year, leaving little room for new international customers, the report added, citing sources.

AI Boom Puts Pressure on Apple’s Memory Supply

Analyst Ming-Chi Kuo previously said Apple’s interest in CXMT is primarily about securing supply rather than cutting costs.

He expects AI infrastructure demand to further widen the memory shortage through 2027, potentially shifting as much as 20% of memory capacity away from consumer electronics.

Kuo has also warned that Apple could receive 10% to 20% fewer A20 chips between the second half of 2026 and the first quarter of 2027 due to tight LPDDR memory supplies.

Apple has already raised prices on several products, including the MacBook Neo, MacBook Air and iPad models, amid tighter memory and storage supplies.

CXMT Gains Importance Despite US-China Chip Tensions

CXMT has emerged as a major player in China’s semiconductor push and is reportedly expanding its production capacity. Reuters previously reported that the company is considering a second memory-chip plant in Beijing.

CXMT also relies on equipment from Dutch semiconductor machinery maker ASML Holding NV (NASDAQ:ASML), including deep ultraviolet lithography systems.

The potential use of CXMT chips could draw attention in Washington, where Chinese semiconductor companies face growing scrutiny. Apple has previously faced criticism from U.S. lawmakers over plans to use Chinese-made memory chips.

Price Action: Apple closed at $313.33 on Friday, up 0.29%, according to Benzinga Pro

Benzinga Edge ranks Apple in the 98th percentile for Quality, while the stock continues to show a positive price trend across the short-, medium- and long-term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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