Apple has initiated testing of DRAM chips from ChangXin Memory Technologies (CXMT) for devices intended for the Chinese market, while also advocating for the U.S. government to allow broader use of CXMT's products. This move comes at a time when U.S.-China relations are strained, particularly concerning technology.
CXMT is becoming increasingly important to China's ambitions for a self-sufficient AI supply chain and is expected to raise at least 29.5 billion yuan ($4.3 billion) in an upcoming IPO.
The company, currently the world's fourth-largest DRAM producer, is projected to increase its market share from approximately 11% last year to 15% by 2028, driven by new production facilities in major Chinese cities. However, despite its capacity expansion, CXMT is not expected to immediately disrupt the market with low-cost chips due to pre-committed output.
Analysts express concern that state-backed expansions in sectors like DRAM could lead to price declines and increased competition for foreign companies, reminiscent of trends seen in solar panels and electric vehicles. The U.S. has refrained from adding CXMT to its trade blacklist, indicating a cautious approach to avoid escalating tensions with China.
This situation underscores the complexities of global supply chains and the potential implications for companies like Apple as they navigate these geopolitical challenges