Apple tests chips from China's CXMT amid memory supply crunch

[Financial News] Apple has conducted tests to use chips from China's ChangXin Memory Technologies (CXMT) in products such as the iPhone and MacBook as it seeks to address a shortage of memory semiconductors.
According to The Wall Street Journal (WSJ) on the 9th local time, Apple is reviewing a plan to use CXMT memory chips in some products sold in China and is holding early-stage supply talks.
As memory chip prices have risen on surging demand from artificial intelligence companies, Apple has been raising product prices around the world. The company appears to believe that securing an additional supply chain for Chinese-made memory could help ease the current shortage.
Apple is reportedly hoping to obtain approval from The White House for transactions involving Chinese companies.
However, negative views continue to emerge in U.S. political circles over the possibility that Apple could use Chinese memory chips. Critics say that if Apple adopts CXMT products, it could encourage other global companies to expand their use of Chinese-made memory, disrupting efforts to build a U.S.-centered semiconductor supply chain.
In June, the U.S. Department of Defense designated CXMT as a company supporting the People's Liberation Army (PLA) and added it to the 1260H list. Being placed on the list does not trigger immediate legal sanctions, but it can restrict contracts with the U.S. military and the receipt of research funding. It also serves as a warning sign for U.S. investors.
The WSJ explained that under U.S. federal regulations, American companies are prohibited from transferring technology to CXMT. This includes technical details and product specifications exchanged during the development of custom semiconductors.
For that reason, it is effectively difficult for Apple to place an order for custom memory chips from CXMT. However, some observers say that buying standard products already in production or negotiating prices may still be allowed under current rules.
People familiar with the matter told the WSJ that not only Apple but also laptop makers HP and Acer have begun using CXMT memory chips in products sold outside the United States to cope with the memory supply crunch.
[email protected] Hong Chaewan Reporter