Apple tests Chinese military-linked DRAM chips for devices sold in China

Apple ↗ 0.93% has begun testing DRAM chips from China's state-backed ChangXin Memory Technologies for use in devices sold within mainland China, the Financial Times reported on Tuesday, a move that could reshape the global memory-chip supply chain and deepen ties between the world's most valuable company and Beijing's semiconductor ambitions.investing+1

A Lobbying Campaign in Washington

Beyond testing CXMT's products, Apple is leading lobbying efforts among U.S. technology companies to persuade the Trump administration to permit broader use of the Chinese chipmaker's memory, according to multiple reports. CXMT sits on the Pentagon's so-called 1260H list of companies with alleged ties to the Chinese military — a designation added in 2025. Apple has reportedly sought assurances from the Commerce Department that CXMT will not be escalated to the more restrictive Entity List, which would effectively bar American companies from doing business with the firm.aiweekly+2

The company has not yet committed to using CXMT chips commercially, and talks remain ongoing. Bloomberg reported last week that Apple is also in discussions with Yangtze Memory Technologies Co. about NAND flash memory, as the iPhone maker looks to expand its supplier base beyond Samsung, SK Hynix, and Micron Technology ↗ 2.77%.detroitnews+2

Memory Shortage Driving the Push

The initiative comes against the backdrop of a severe global DRAM shortage driven by surging demand from artificial intelligence applications. DRAM contract prices have risen an estimated 55 to 60 percent in early 2026, according to industry data, forcing Apple to raise prices across its product lineup. Global DRAM revenue reached a record high of nearly $100 billion in the first quarter of 2026, up 260 percent year-on-year, according to Counterpoint Research.counterpointresearch+2

CXMT has emerged as the world's fourth-largest DRAM producer, holding roughly 7.7 percent of the global market in late 2025, with analysts projecting that share could climb to 15 percent. The company's revenue surged more than 700 percent year-on-year in the first quarter of 2026. CXMT is also preparing for a blockbuster initial public offering on Shanghai's STAR Market, seeking to raise 29.5 billion yuan ($4.3 billion).douglasresearch.substack+2

Market Reaction

The Financial Times report sent Chinese memory-chip stocks rallying on optimism that Apple's interest could validate China's domestic semiconductor supply chain. For incumbent suppliers, the development poses a competitive threat — analysts have flagged that Micron's mobile segment could face pressure if Apple diversifies toward lower-cost Chinese DRAM. The broader memory market remains in a strong upcycle, with stocks across the sector outperforming the wider tech market this year.ft+2