Apple Starts Testing China's State-Backed Memory Chips, and Washington is Watching
Apple has begun testing memory chips from China's state-backed ChangXin Memory Technologies (CXMT) for devices sold in China, according to the Financial Times. This puts it behind a supplier that Washington has identified as a security risk.
Key Takeaways:
- Apple is exploring Chinese memory suppliers, including CXMT, despite political tensions and US concerns over national security.
- CXMT is the world's fourth-largest DRAM manufacturer, with plans to expand its capacity significantly by 2028.
- The company is backed by the Chinese government and expected to be highly profitable upon its upcoming IPO.
- Apple faced criticism from US politicians in 2022 for considering Chinese memory suppliers and has since relied on custom silicon and US partners.
- Washington temporarily held off on blacklisting CXMT due to concerns about escalating tensions with China, but the industry fears a potential long-term impact on global supply chains.
"Testing does not mean buying. CXMT will not flood the market soon either... Yet the industry fears a longer game." - Financial Times
For Apple, securing a cheaper and closer memory supply for its China business is crucial, but the future of this partnership remains uncertain amid ongoing geopolitical tensions.