Apple is reportedly looking into acquiring DRAM chips from ChangXin Memory Technologies (CXMT) and NAND flash chips from Yangtze Memory Technologies Co., Ltd. (YMTC) for use in its products, especially iPhones, iPads, and MacBooks destined for the Chinese market. This strategic move is driven by the currently high and scarce supply of memory chips. For iPhones, this would involve CXMT supplying LPDDR5X dies to TSMC, where they would be integrated with Apple's Axx SoCs using TSMC's InFO-PoP packaging technology.
This decision, particularly for CXMT-DRAM in iPhones, would be a significant achievement for the Chinese semiconductor industry, which the Chinese state has heavily subsidized for years to reduce reliance on foreign suppliers. Both CXMT and YMTC have been making technological advancements; CXMT demonstrated its LPDDR5X chips in November 2025, and YMTC's Xtacking 4.0 technology has enabled mass production of 300+ layer 3D NAND, meeting international standards and Apple's quality requirements.
Industry analysts suggest that Apple's consideration of Chinese memory chips is a tactic to gain leverage in price negotiations with its traditional suppliers like Samsung and SK Hynix. Apple has a long-standing strategy of using multiple suppliers for the same components to induce price competition and maintain margins. The company was reportedly forced to accept a significant price hike from Samsung, with LPDDR5X memory chips reaching $70, severely impacting profitability.
However, several hurdles remain. Geopolitical tensions between the US and China, along with security concerns, could complicate US government approval for Apple to use chips from companies like YMTC, which has faced potential embargo risks. Additionally, Samsung, SK Hynix, and Micron, Apple's current core suppliers, might implement strategic countermeasures if Apple moves forward with Chinese suppliers, potentially re-prioritizing supply for products like high-bandwidth memory (HBM) and enterprise solid-state drives (eSSD) to other clients. Despite rumors of Apple CEO Tim Cook mentioning YMTC and Google considering CXMT, the prevailing industry view is that actual supply contracts face significant practical constraints.
While this specific Financial Times article could not be accessed directly, the information regarding Apple's interest in Chinese memory chips from CXMT and YMTC, and the underlying reasons, is widely reported across other news outlets.
