Apple tests CXMT memory chips for China devices, FT reports

Apple has started testing DRAM chips made by ChangXin Memory Technologies for products sold in China and is asking the U.S. government to allow wider use of the Chinese company’s components, the Financial Times reported on Wednesday, citing people familiar with the matter. CXMT plans to raise at least 29.5 billion yuan, or $4.3 billion, in an initial public offering and is expected to increase its DRAM market share to 15% by 2028 from about 11% last year, according to the FT, citing SemiAnalysis data.

The reported testing places Apple’s supply chain choices inside a widening policy dispute over advanced technology, national security and China’s industrial strategy. The FT described CXMT as state-backed and said the company is set to play a central role in Beijing’s effort to build a more self-sufficient artificial intelligence supply chain.

Why the supplier matters

DRAM is a memory chip used across products including smartphones and servers, according to the FT. For device makers, memory supply affects component sourcing, cost exposure and production resilience, particularly when governments are drawing tighter boundaries around technology flows between the U.S. and China.

CXMT is the world’s fourth-largest DRAM producer, the FT reported. Its main global competitors include Samsung Electronics, SK Hynix and Micron Technology.

The FT said CXMT is adding production lines in Hefei, Shanghai and Beijing. SemiAnalysis analyst Ray Wang told the FT that the company’s growing capacity is unlikely to put immediate pressure on the market through a surge of low-cost chips because much of its production has already been committed.

Longer term, the report said, parts of the industry are concerned that state-supported expansion in memory chips could resemble prior patterns in solar panels and electric vehicles, where increased Chinese capacity contributed to lower global prices and pressure on foreign competitors.

Political scrutiny

Apple previously encountered resistance from U.S. policymakers after considering Chinese memory suppliers in 2022, the FT reported. Those critics included Marco Rubio, then a U.S. senator and now Secretary of State, according to the report.

The ownership structure of CXMT is part of the sensitivity around the company. The FT reported that at least 15 state-owned shareholders together hold 36% of CXMT, and that many private funds invested in the company also have state-owned limited partners.

The reported lobbying by Apple comes as Washington weighs how far to restrict Chinese technology companies. Reuters previously reported that the U.S. had delayed adding CXMT, artificial intelligence start-up DeepSeek and more than 100 other companies to a trade blacklist, even though they had been identified as national security risks. Reuters said the Trump administration was seeking to avoid intensifying tensions with Beijing.

A trade blacklist designation can restrict access to U.S. technology and suppliers, making it a material policy tool for companies embedded in global electronics supply chains. The absence of such a designation does not remove political risk, but it can affect whether multinational buyers can proceed with supplier testing and qualification.

Apple and CXMT did not immediately respond to CNBC’s requests for comment.

This story draws on original reporting from CNBC.