The iPhone maker is seeking US government approval to source memory from a blacklisted Chinese chipmaker as DRAM prices triple amid AI-driven demand.
Apple is testing DRAM memory chips from ChangXin Memory Technologies for devices sold in China, a move that requires navigating one of the more politically charged supply chain puzzles in tech. CXMT currently sits on a Pentagon blacklist due to concerns about military affiliations, which means Apple needs US government approval before any deals go through.
The timing is not accidental. LPDDR5X memory prices have roughly tripled since early 2025, driven by insatiable demand from AI applications and data centers. When your component costs spike that aggressively, even a company sitting on more than $150B in cash starts looking for alternatives.
Why Apple is eyeing a blacklisted chipmaker #
Here’s the thing about memory chips: the market is dominated by a handful of players, mostly Samsung, SK Hynix, and Micron. CXMT, which launched in 2016 and now holds approximately 4% of the global DRAM market, has emerged as one of the few viable alternatives.
CXMT produces DDR5 and LPDDR5X chips that reportedly meet Apple’s technical requirements for iPhones and other Apple devices, at least for the Chinese market.
Apple has been lobbying the US government for assurances that sourcing from CXMT won’t trigger further restrictions, such as placement on the Entity List. The Financial Times, Bloomberg, and Reuters have all reported on these efforts.
CXMT isn’t just courting Apple, either. The Chinese chipmaker recently secured a long-term supply agreement with Tencent valued at approximately $3 billion.
The memory price squeeze hitting your wallet #
The tripling of LPDDR5X contract prices since early 2025 has translated directly into higher device prices for Apple. Every iPhone, iPad, and Mac contains DRAM, and Apple has already raised prices on devices in response.
Diversifying to CXMT for the Chinese market would give Apple a pressure valve. China is Apple’s third-largest market by revenue, and sourcing locally could reduce both costs and logistical complexity.
What this means for investors and the broader market #
If Apple successfully secures approval to source from CXMT, it could set a precedent that other Western tech companies follow. Washington will have to weigh national security concerns against the reality that US companies need affordable components to compete globally.
For semiconductor investors, Samsung, SK Hynix, and Micron currently benefit from the tight supply environment, and any expansion of CXMT’s customer base could eventually put downward pressure on prices.
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