American Domestic Tech Integration: Report Indicates Apple Eyes Local Supplier CXMT to Power Devices in China
Apple has started testing DRAM chips from China’s state-backed ChangXin Memory Technologies for devices sold within the Chinese market. The Financial Times reports that the tech giant is actively lobbying the United States government to permit a broader use of CXMT’s products. This corporate strategy comes at a time when using Chinese suppliers carries immense geopolitical risk due to ongoing American efforts to contain Beijing’s tech ambitions.
CXMT plays a major role in Beijing’s push to build a self-sufficient artificial intelligence supply chain. The firm expects to become one of the most profitable technology companies to list in Shanghai, planning to raise at least 29.5 billion yuan, or 4.3 billion dollars, in an upcoming initial public offering. Apple previously faced heavy pushback from American policymakers in 2022, including current Secretary of State Marco Rubio, when the company first explored using Chinese memory suppliers. Currently, fifteen state-owned shareholders hold a collective thirty-six percent stake in CXMT, alongside state-backed private funds.
Data from SemiAnalysis shows that CXMT ranks as the world’s fourth-largest producer of DRAM, which powers devices ranging from smartphones to server networks. Analysts expect the company’s global market share to rise from eleven percent last year to fifteen percent by 2028 as new production lines open in Hefei, Shanghai, and Beijing. This growth places the firm directly alongside global peers like Samsung Electronics, SK Hynix, and Micron Technology.
Memory analyst Ray Wang notes that CXMT will not immediately flood the market with cheap components because clients have already pre-committed to its current output. However, foreign rivals still fear a long-term repeat of the patterns seen in the solar panel and electric vehicle sectors, where state-backed expansion caused global prices to plummet. Meanwhile, the Trump administration has held off on adding CXMT, artificial intelligence startup DeepSeek, and over one hundred other companies to its official trade blacklist to avoid escalating tensions.
