Apple is reportedly testing DRAM chips from CXMT, a Chinese memory manufacturer that has been placed on a US blacklist due to alleged ties to the People's Liberation Army. The testing is aimed at devices sold exclusively in the Chinese market, according to a report from The Financial Times. This development marks a significant step in Apple's ongoing efforts to diversify its supply chain and reduce reliance on traditional memory suppliers such as Samsung, SK Hynix, and Micron.

Background on CXMT and Its Blacklisting

CXMT, short for ChangXin Memory Technologies, is a Chinese semiconductor company specializing in DRAM chips. The Pentagon added CXMT to a blacklist in 2020 over concerns that the company is linked to the People's Liberation Army. This designation makes it difficult for American companies to do business with CXMT without obtaining a special license from the US government. The blacklisting is part of broader US efforts to restrict the flow of advanced technology to Chinese companies that could be used for military purposes. CXMT is also suspected of benefiting from state subsidies, which US lawmakers argue gives it an unfair advantage against competitors like Micron and Samsung.

Despite these restrictions, Apple has been lobbying the US government for clearance to use CXMT's DRAM chips in its products. The company argues that the current memory chip shortage, which has driven up prices across the industry, makes it necessary to consider all available sources of supply. Apple has already raised prices on some of its products due to the crunch, and using CXMT chips could help stabilize costs for devices sold in China, a critical market for the iPhone maker.

Apple's Lobbying Efforts and Past Attempts

This is not the first time Apple has sought to use Chinese memory suppliers. In 2022, the company evaluated NAND flash chips from YMTC, another Chinese memory maker, for use in iPhones sold in China. That effort drew sharp criticism from US lawmakers, who warned that it could strengthen state-backed competitors and undermine national security. A bipartisan group of senators urged the Biden administration to block YMTC from supplying Apple, citing alleged export-control violations. Ultimately, Apple appears to have shelved those plans, but the company has continued to explore similar options with other Chinese suppliers.

More recently, in June 2026, Tim Cook told The Wall Street Journal that Apple's price hikes were unavoidable due to the market-wide memory chip crunch. Cook also suggested that the US should reconsider its restrictions on certain Chinese companies, saying, "I think everything needs to be on the table" and "We should look at all supply." These comments came shortly after it emerged that Apple had already been seeking clearance from the Trump administration to purchase chips from CXMT. Now, the FT reports that Apple has taken the next step by actually testing the DRAM chips for devices sold in China.

The Memory Chip Crunch and Its Impact on Apple

The global memory chip shortage has been a persistent problem for the electronics industry since 2020. DRAM and NAND prices have soared due to strong demand from data centers, PCs, and smartphones, coupled with limited supply from the top manufacturers. Apple, as one of the largest consumers of memory chips in the world, has been hit hard by these price increases. The company has had to raise prices on several products, including certain Mac models and iPhones, to offset the higher component costs. In some cases, Apple has also delayed launches or reduced memory capacities to keep prices competitive.

Using CXMT chips for devices sold in China could provide Apple with a cheaper source of DRAM, potentially allowing it to maintain profit margins without passing on the full cost to Chinese consumers. However, the move is fraught with risk. US lawmakers have long argued that allowing American companies to purchase chips from blacklisted Chinese suppliers could boost those companies' revenues and technological capabilities, ultimately strengthening China's semiconductor industry at the expense of US competitors. There are also national-security concerns, as chips made by CXMT could be modified to include backdoors or other vulnerabilities that could be exploited by the Chinese government.

Reactions From US Lawmakers and Industry Observers

Already, some US lawmakers have expressed alarm over Apple's testing of CXMT chips. A group of senators is reported to be preparing a letter to the White House urging the administration to block any deal between Apple and CXMT. They argue that even if the chips are used only in devices sold in China, the transaction would still provide CXMT with legitimacy and revenue, both of which could be used to further advance its technology. The lawmakers are also concerned about precedent: if Apple is allowed to work with CXMT, other US tech companies might follow suit, leading to a broader erosion of export controls.

On the other hand, some industry analysts see Apple's strategy as a pragmatic response to market realities. "The memory chip market is in a state of extreme tightness, and companies like Apple have very few options," said one analyst. "If the US government wants to maintain its competitive edge, it needs to consider whether blocking access to all Chinese suppliers is the right approach. Maybe there's room for a targeted exemption that doesn't harm national security." Others point out that Apple's move is also a negotiation tactic: by threatening to use CXMT chips, Apple may be trying to pressure conventional suppliers like Samsung and Micron into offering better prices.

Historical Context: US-China Tech Tensions

The testing of CXMT chips comes against a backdrop of escalating tensions between the US and China over technology. The US has imposed a series of export controls and sanctions on Chinese tech companies, including Huawei, SMIC, and now YMTC and CXMT. These measures are designed to slow China's technological advancement, particularly in semiconductors, which the US Department of Defense considers critical to national security. China, in turn, has retaliated with its own restrictions and has invested heavily in building a self-sufficient semiconductor industry. The result is a fragmented global supply chain, with companies like Apple caught in the middle.

For Apple, the Chinese market is too important to ignore. China accounts for approximately 20% of Apple's total revenue, and the company relies on the country for both manufacturing and sales. Any move that could jeopardize its relationship with Beijing would be risky. By testing CXMT chips, Apple is signaling to Chinese regulators that it is willing to work with local suppliers, which could help it maintain good relations with the Chinese government. At the same time, Apple must carefully tread the line with Washington, where any hint of collaboration with blacklisted entities could invite legal or political backlash.

Technical Details: What DRAM Chips Are Being Tested?

The DRAM chips being tested by Apple are believed to be CXMT's 8 Gb LPDDR4 and LPDDR5 products. These are commonly used in smartphones and tablets for memory-intensive tasks like multitasking, gaming, and video streaming. CXMT's DRAM technology is considered competitive with older generation products from Samsung and SK Hynix, though it lags behind in terms of density and power efficiency. For devices sold in China, where price sensitivity is high, Apple may be willing to accept slightly lower performance in exchange for significant cost savings. However, it remains to be seen whether the chips meet Apple's stringent quality standards. Testing is ongoing, and Apple has not made any public commitments to purchase CXMT DRAM.

The FT report suggests that Apple is evaluating the chips specifically for iPhones, but it could also apply to iPads and other devices sold in the Chinese market. The testing is being conducted at Apple's facilities, likely in California and China, and involves validation of the chips' electrical, thermal, and reliability characteristics. Sources familiar with the matter say that preliminary results have been encouraging, but further testing is needed before Apple can make a final decision.

Potential Implications for the Industry

If Apple eventually incorporates CXMT DRAMs into its products, it would be a major win for the Chinese memory manufacturer. CXMT has struggled to gain traction in the global market due to the US blacklist and quality concerns. A deal with Apple could provide the company with much-needed revenue and validation, potentially allowing it to ramp up production and invest in more advanced nodes. This, in turn, could help China reduce its dependence on imported memory chips, a key goal of Beijing's "Made in China 2025" strategy.

For Apple, using CXMT chips would also give it greater leverage in negotiations with traditional suppliers. The memory market is dominated by just three companies — Samsung, SK Hynix, and Micron — which gives them significant pricing power. By introducing a fourth, lower-cost competitor from China, Apple could drive down prices and secure better terms. However, this strategy is not without risks. If the US government cracks down on Apple's deal with CXMT, the company could face fines or restrictions on its own sales in the United States. It could also damage Apple's reputation among American consumers and lawmakers who are wary of Chinese technology.

Conclusion

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Source: 9to5Mac News