Apple tests Chinese memory chips amid AI-driven shortage

Apple ↗ 0.29% has been evaluating memory chips from China's ChangXin Memory Technologies for use across its product lines, including iPhones and MacBooks, as a global DRAM shortage driven by artificial intelligence demand squeezes supply for consumer electronics.

The Wall Street Journal News Corp ↘ 4.19% reported on Sunday that Apple has initiated preliminary discussions with CXMT regarding the provision of components, aiming to incorporate them into devices sold in China. The company is seeking White House approval to do business with the Chinese manufacturer, which sits on a Pentagon blacklist over alleged ties to China's military.wsj+1

A Deepening Memory Crisis

The move comes as Apple confronts what CEO Tim Cook has called an "unsustainable" memory shortage. In a June interview with the Journal, Cook said price increases on Apple products were "unavoidable" due to surging costs. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable," he said.wsj

About 70 percent of memory chips produced in 2026 are being absorbed by AI data centers, according to industry estimates, leaving consumer electronics manufacturers competing for a shrinking pool of supply. PC DRAM prices roughly doubled in the first quarter of 2026, the steepest quarterly jump ever recorded in the memory industry.pasqualepillitteri

iPhone 18 Pro Faces Launch Constraints

The shortage is now threatening the availability of Apple's next-generation iPhones. According to a report from GSMArena, TSMC Taiwan Semiconductor Manufacturing Company Limited ↗ 0.44% has made progress on yields for the A20 Pro chip using its N2 process, but wafers are piling up waiting for DRAM to be packaged with them. Apple is scrambling to secure DRAM from Micron ↘ 0.44%, SK Hynix ↘ 3.92%, and Samsung, while also exploring Chinese-sourced options including CXMT.techjuice+1

The situation is compounded by Apple's reported decision to launch only Pro models at its September event, meaning the iPhone 18 Pro and Pro Max — along with a foldable device — will bear the full weight of initial demand.gsmarena

Political Headwinds

Apple's pursuit of CXMT chips has drawn bipartisan opposition in Washington. In late July, senators demanded that Cook commit by August 21 to not using memory chips from CXMT and fellow Chinese chipmaker YMTC. Micron has warned that the move could undermine the domestic memory industry. Apple proposed using Chinese chips only outside the United States, but the political fight remains unresolved as the company races to secure enough supply for its fall product launches.9to5mac+2