Construction is reportedly expanding at a rapid pace in China’s ChangXin Memory Technologies (CXMT) in Hefei as the state-backed chipmaker gains global attention amid the race for memory chips.
Apple Inc. (NASDAQ:AAPL) has also begun testing CXMT’s DRAM chips for devices sold in China, while U.S. tech companies are lobbying Washington to allow broader use of their products, as per previous reports.
After years of heavy losses, CXMT has become a cornerstone of China’s AI chip ambitions and is poised to rank among the most profitable technology companies to go public on China’s domestic stock market, reported the Financial Times on Wednesday.
U.S. tech companies see China’s CXMT as a potential fourth global DRAM supplier amid tight chip supply, but the move remains politically sensitive.
CXMT has also built a strong partnership with Dutch chip equipment maker ASML Holding NV (NASDAQ:ASML), relying on its deep ultraviolet (DUV) lithography machines for production despite China’s push to localize semiconductor manufacturing.
Since CXMT is not on the U.S. Entity List, it can still purchase China-approved ASML equipment. The partnership is symbolized by a “friendship garden” established at CXMT’s headquarters in 2024.
Reuters previously reported that the Trump administration has delayed adding CXMT, AI startup DeepSeek, and more than 100 other companies to its U.S. trade blacklist, despite national security concerns, in an effort to avoid escalating tensions with China.
Apple did not immediately respond to Benzinga‘s request for comments.
Apple Faces Memory Shortage
Analyst Ming-Chi Kuo said Apple’s reported push to secure memory chips from Chinese supplier CXMT is driven by fears of future chip shortages, not lower costs. He believes growing demand from AI data centers will widen the global memory supply gap through 2027, with up to 20% of memory capacity shifting away from consumer electronics.
Kuo warned Apple could receive 10%–20% fewer A20 chips between the second half of 2026 and the first quarter of 2027 due to tight LPDDR memory supply, though some of the shortfall may also stem from overbooked orders.
Apple has previously faced criticism from U.S. lawmakers, including then-Sen. Marco Rubio in 2022, over plans to use Chinese memory chips due to security concerns.
Last week, Apple hiked prices on products including the MacBook Neo, MacBook Air, iPad Pro, iPad Air, HomePod, HomePod mini and Apple TV, while leaving iPhone prices unchanged, citing tighter memory and storage supplies amid rising AI infrastructure demand.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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