Apple’s Chinese memory gamble fails to disrupt global DRAM market dynamics

Apple’s efforts to leverage Chinese memory suppliers as an alternative to Samsung and SK Hynix have been thwarted by supply constraints and market demand, strengthening the position of existing vendors amid rising memory prices and geopolitical tensions.

Apple’s attempt to use a Chinese memory supplier as leverage against its existing chip vendors appears to have missed the mark. Reports cited by Korean and Chinese trade media suggest the company’s approach has not forced Samsung Electronics or SK Hynix to cut prices and may instead have strengthened their bargaining position as memory markets remain tight.

According to MacRumors, Apple has begun testing DRAM chips from ChangXin Memory Technologies, or CXMT, while also examining Yangtze Memory Technologies, or YMTC, as part of a broader effort to diversify its supply chain. The move comes as memory costs have risen across much of Apple’s product line, making procurement more difficult for device makers trying to protect margins.

The problem for Apple is that CXMT is not a straightforward low-cost alternative. Industry reporting says US export controls have prevented the company from using extreme ultraviolet lithography equipment, forcing it to rely on older deep ultraviolet tools that require more wafer input to produce the same output. That raises production costs and limits how far CXMT can discount its chips without selling at a loss.

Instead of creating a cheaper fallback, the search for a Chinese supplier appears to have run into a market where local demand is already spoken for. Digital Daily reported that Huawei and Xiaomi have tied up much of CXMT’s capacity through long-term, high-priced contracts, leaving little incentive for the company to offer Apple a bargain. At the same time, Tom’s Hardware reported that CXMT-based DRAM modules have not materially undercut products using Samsung or SK Hynix memory, with some listings priced at similar or even higher levels.

The wider market backdrop also works against Apple. SK Group chairman Chey Tae-won has said RAM prices are currently “abnormally high” because supply is tight and demand from artificial intelligence infrastructure is rising quickly. That has encouraged manufacturers to prioritise high-bandwidth memory for servers, shrinking supply for standard DRAM used in phones and PCs. The result is that Samsung and SK Hynix can still defend pricing, while Apple’s flirtation with Chinese memory has also drawn political scrutiny from figures pressing the company to avoid Chinese chips altogether.