Apple Tests DRAM Chips from China's Blacklisted CXMT Amid Global Memory Shortage

Apple has begun testing DRAM memory chips from China's state-backed ChangXin Memory Technologies (CXMT) specifically for devices sold in the Chinese market, according to a July 8, 2026 Financial Times report. The company is simultaneously lobbying the Trump administration for clearance to use CXMT more broadly, as an AI-driven global DRAM shortage has forced Apple to raise prices and squeezed its margins.

Testing and Negotiations with Chinese Chipmakers

Apple is actively testing CXMT DRAM chips for China-market iPhones and other devices, progressing to technical qualification testing that typically precedes supplier approval for production use. No final deal has been signed, and discussions are ongoing.

Separately, Apple is in discussions with Yangtze Memory Technologies Co. (YMTC) about sourcing NAND flash memory. YMTC is also on the Pentagon's 1260H list.

The Lobbying Effort and Regulatory Hurdle

CXMT was added to the Pentagon's Section 1260H "Chinese military company" list in June 2026, alongside Alibaba, Baidu, BYD, and YMTC. That designation restricts U.S. government contracts but is not a full trade ban on private-sector purchases.

According to the Financial Times, Apple has lobbied the White House, Commerce Department, and other parts of the Trump administration for formal assurance that buying from CXMT will not trigger later trade action, such as escalation to the Commerce Department's Entity List — which would impose a full export ban. Apple is seeking a "green light" or waiver that would shield its supply arrangement even if U.S.-China tensions escalate further.

Why Now: The Global DRAM Shortage

The push for Chinese memory chips is driven by a severe global DRAM shortage. Memory contract prices have surged 55–60% due to AI data center demand, directly pressuring Apple's hardware margins.

On June 25, 2026, Apple raised Mac and iPad prices by 15–25%, citing memory and storage chip costs. The entry-level MacBook Neo increased to $699 from $599, and the 13-inch MacBook Air moved to $1,299 from $1,099.

Analyst Ming-Chi Kuo said the move is less about cost savings and more about "surviving a worsening AI-driven supply crunch," with the memory supply-demand gap expected to widen through 2027.

CXMT's Market Position and Rapid Growth

CXMT is the world's fourth-largest DRAM producer, behind Samsung, SK hynix, and Micron, who collectively hold over 90% of the market.

According to Omdia data cited in CXMT's IPO prospectus, CXMT's global DRAM share rose from roughly 4% in Q2 2025 to 7.67% in Q4 2025. Multiple sources report it reached approximately 8% in Q1 2026.

CXMT is pursuing a $4.2 billion Shanghai IPO to fund capacity expansion. The company swung from a net loss in early 2025 to a net profit of ¥33 billion (approximately $4.5 billion) on ¥50.8 billion revenue in Q1 2026 — revenue up roughly 7x year-over-year.

Market Reaction

Apple's stock rose 3.1% on Friday, June 26 (the day the Financial Times story broke) and another 0.4% in premarket on June 29 to approximately $285. Loop Capital reiterated a Buy rating, and multiple analysts noted the CXMT talks signal a genuine supply-access problem, not just a price play.

On June 25, before the CXMT news, Apple shares had fallen 6.1% on the same day Samsung and SK hynix rallied on AI memory demand — the same memory-price surge that Apple was trying to mitigate.

What This Means for the Global Supply Chain

If approved, Apple's adoption of CXMT would be the largest validation of a Chinese DRAM maker by a Western consumer electronics giant, potentially unlocking massive volume for CXMT and accelerating its technology roadmap.

The move would create a de facto China-specific memory supply chain for Apple devices sold there, parallel to its existing Samsung/SK hynix/Micron supply lines for the rest of the world.

Competitors including HP, Dell, and Lenovo are already evaluating CXMT modules, and Apple's move could push them to deepen their own China sourcing. The key risk: if Washington escalates CXMT to the Commerce Entity List, Apple would have to unwind the entire arrangement.

The episode tests the limits of the U.S.-China trade truce and whether national security restrictions on Chinese chipmakers can coexist with commercial demand during a global shortage.

Important distinction: The Pentagon's 1260H list is a designation that a company is a "Chinese military company" — it restricts U.S. government procurement but does not by itself impose a ban on private-sector purchases. The Commerce Department's Entity List is the far stricter regime. Apple is seeking assurances that CXMT will not be escalated to that level.