Apple has begun testing DRAM memory chips from China's state-backed ChangXin Memory Technologies (CXMT) for devices sold within China, according to a Financial Times report published July 8, 2026. The move comes as Apple simultaneously leads a lobbying effort among US tech companies to secure Washington's blessing for broader use of CXMT's products, which are manufactured by a company blacklisted by the Pentagon.

Apple's CXMT Chip Testing: What the Financial Times Report Reveals

The Financial Times reported that Apple has progressed from initial discussions to active qualification testing of CXMT's DRAM chips. This technical validation phase typically precedes a supplier being approved for production use. Last week, reports emerged that Apple was in talks with CXMT and fellow Chinese chipmaker Yangtze Memory Technologies (YMTC) about sourcing memory, with no deal finalized at that stage.

Apple has not yet committed to commercial use of CXMT's chips. The company continues to lead a lobbying effort to get the Trump administration's approval, approaching the US government about using CXMT's products in late May or early June 2026. Apple is using its Washington connections to push for broader industry clearance.

The testing comes as Apple faces a severe global DRAM shortage. Analyst Ming-Chi Kuo warned that Apple could receive 10-20% fewer A20 chips between the second half of 2026 and the first quarter of 2027 due to tight LPDDR memory supply. AI-driven demand for high-bandwidth memory has diverted production from consumer-grade DRAM, causing sharp price spikes, with some contracts reportedly rising 50-60%.

CXMT: From Obscure State-Backed Firm to Fourth-Largest DRAM Producer

CXMT was virtually unknown globally and was bleeding billions before the industry-wide memory shortage thrust it into the spotlight. It is now the world's fourth-largest DRAM producer, behind Samsung Electronics, SK Hynix, and Micron Technology, accounting for roughly 11% of global DRAM wafer capacity. Industry forecasts project CXMT reaching 15% of global capacity by 2028.

The company is mass-producing competitive DDR5 and LPDDR5X memory chips and is preparing a major IPO. However, CXMT remains a sensitive supplier because the Pentagon added it to its 1260H blacklist of companies deemed linked to the Chinese People's Liberation Army. Technically, Apple is not prohibited from doing business with companies on the 1260H list, but it could face repercussions without the Trump administration's blessing.

Tim Cook has previously commented on the wider memory crunch, saying price increases were difficult to avoid and suggesting the US should review all possible supply options, including companies restricted under national-security rules.

US Lawmakers Probe Chinese AI Models in American Companies

The CXMT chip story unfolds alongside a parallel investigation by US lawmakers into the growing use of Chinese AI models by American companies, highlighting the broader tension around Chinese technology adoption. Two US House Committees are conducting a joint investigation into whether US companies using Chinese-developed AI systems from firms such as DeepSeek, Alibaba, Moonshot AI, and MiniMax pose data security and national security risks.

The investigation, led by House Select Committee on China Chairman John Moolenaar and House Homeland Security Committee Chairman Andrew Garbarino, is examining whether these AI models could introduce security vulnerabilities or expose sensitive data. Companies including Airbnb and Anysphere have been asked to disclose their use of Chinese AI systems.

Analysts note that curbing adoption will be legally challenging since Chinese open-source models are freely available online, and an outright ban could run into First Amendment protections. The probe has also revealed that Cursor, which Elon Musk's SpaceX is acquiring for $60 billion, used Chinese model Kimi from Moonshot AI to build its Composer 2 product.

Memory Shortage Driving Industry-Wide Supply Chain Shifts

Apple's interest in CXMT is driven by an AI-induced memory supply crunch that is reshaping the semiconductor landscape. AI infrastructure buildout is prioritizing high-performance HBM memory for training and inference, squeezing supply for mobile and consumer electronics. This follows similar pressures seen in PC and console hardware sectors.

Adding CXMT would diversify Apple's supply chain beyond Samsung, SK Hynix, and Micron, strengthening Apple's negotiating position on pricing and allocation. It would also help guarantee supply through 2027, at least for China-market devices. However, US lawmakers argue that deals with CXMT and YMTC could strengthen Chinese chipmakers backed by Beijing, while Apple wants more flexibility to manage costs and keep devices competitive in the Chinese market.

For context, India’s data centre boom and the global AI infrastructure buildout have both contributed to the memory supply crunch. Meanwhile, major tech companies are racing to secure data centre capacity, further straining the memory supply chain.

FAQ

What is CXMT and why is it controversial?
ChangXin Memory Technologies is a Chinese state-backed DRAM manufacturer that the Pentagon has blacklisted over alleged links to China's military. It has grown rapidly to become the world's fourth-largest DRAM producer.

Will Apple use CXMT chips in iPhones sold outside China?
According to reports, Apple is testing CXMT chips specifically for devices sold within China and is lobbying for broader approval. Commercial use outside China remains uncertain and would require US government clearance.

Why is Apple turning to a blacklisted Chinese supplier?
A severe AI-driven memory shortage has disrupted global DRAM supply, causing price spikes of 50-60%. Apple needs alternative suppliers to diversify beyond Samsung, SK Hynix, and Micron.

What are the security concerns around Chinese AI models in US companies?
US lawmakers are investigating whether Chinese AI models from firms like DeepSeek and Moonshot AI could introduce data security vulnerabilities or expose sensitive US corporate data, citing Chinese laws requiring data sharing with the government.

Sources