Canada – 2026/05/23: In this illustrated photo, the CXMT (ChangXin Memory Technologies) logo is displayed on a smartphone screen. (Photo illustration: Thomas Fuller/SOPA Images/LightRocket, Getty Images)
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Apple has begun testing DRAM chips made by Chinese government-backed ChangXin Memory Technologies for devices sold in China and is lobbying the U.S. government to allow broader use of CXMT products, the Financial Times reported Wednesday, citing people familiar with the matter.
The company’s decision comes as engagement with Chinese suppliers has become a geopolitically sensitive issue amid increasing U.S. efforts to contain China’s high-tech ambitions.
According to the FT, CXMT is poised to become a core part of the Chinese government’s efforts to create a self-sufficient AI supply chain, and is expected to become one of the most profitable Shanghai-listed technology companies. The company reportedly plans to raise at least 29.5 billion yuan ($4.3 billion) in an upcoming IPO.
The FT reported that Apple faced significant backlash from U.S. policymakers in 2022, including then-Senator and now Secretary of State Marco Rubio, after considering using a Chinese memory supplier. At least 15 state-owned shareholders collectively own 36% of CXMT, the report said, adding that many of its private funds also receive support from state-owned limited partners.
According to the report, CXMT is currently the world’s fourth-largest maker of DRAM, a memory chip used in products ranging from smartphones to servers. The company’s market share is expected to rise to 15% by 2028 from about 11% last year as new production lines come online in the Chinese cities of Hefei, Shanghai and Beijing, according to the report, which cited data from Semi-Analysis.
Major global peers in DRAM include Samsung Electronics, SK Hynix, and Micron Technology.
CXMT capacity is expanding, but with much of its production being pre-commissioned, it’s unlikely that cheaper chips will flood the market any time soon, Semianalysis memory analyst Lei Wang told the FT.
Nevertheless, the industry is concerned about a repeat of the pattern seen in sectors such as solar panels and electric vehicles over time, where state-backed capacity expansions ultimately led to lower global prices and squeezed overseas rivals, the report said.
Reuters previously reported that the Trump administration is seeking to avoid escalating tensions with China, and the US is holding off on adding CXMT, AI startup DeepSeek and more than 100 other companies to its trade blacklist despite being cited as a national security risk.
Apple and CXMT did not immediately respond to CNBC’s requests for comment.
