Apple is testing Chinese memory chips from ChangXin Memory Technologies and Yangtze Memory Technologies, seeking to bolster supply and cut costs amidst political controversy and supply constraints in a move that could reshape its sourcing strategy.
Apple is reportedly moving closer to adding Chinese memory makers to its supply chain, with testing under way on DRAM from ChangXin Memory Technologies and NAND from Yangtze Memory Technologies, according to reports published in July. The talks come as the company seeks to steady supply and contain costs during a period of tighter memory markets, while also navigating the political sensitivity of buying from firms with links to China’s state sector.
The Financial Times has reported that Apple has pressed the Trump administration for permission to buy DRAM from CXMT, which is on the Pentagon’s blacklist. Bloomberg’s Mark Gurman has said Apple is working with officials to limit the backlash in Washington if the company ultimately sources memory from CXMT and YMTC. Apple has also indicated that, if it uses these suppliers, the parts would be reserved for products sold in China. In its latest earnings call, the company said: “We’re continuing to evaluate this in terms of the sources of supply. It would help us on the supply side and perhaps the pricing side. It’s unclear on the pricing side, but it could help on the supply side. We’re evaluating all options.”
The issue has already drawn political pushback. According to a letter reported by MacRumors, several US senators, including Chuck Schumer, urged Apple to abandon plans to buy from CXMT and YMTC and asked the company to disclose any technical information shared with the suppliers. The senators argued that such sourcing could weaken the US semiconductor position and create a troubling precedent.
Even if the White House gives approval, supply constraints may limit the near-term impact. Reporting in early August suggested CXMT may not be able to meet Apple’s DRAM requirements quickly because of its limited capacity, and that the company has not been offering Apple discounts. For Apple, the commercial logic is clear: Chinese memory could ease supply pressure and possibly reduce costs. The political cost, however, remains uncertain.
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