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Apple Tests Chinese Memory Chips Amid Supply Crunch
11 Aug
Summary
- Apple is testing memory chips from Chinese supplier CXMT.
- CXMT is a major Chinese chipmaker considered a national security risk.
- A global memory supply crunch is driving the decision amid rising costs.
Apple has begun testing memory chips from China's CXMT, a move that could impact its product supply chain. CXMT, a significant Chinese chipmaker specializing in DRAM, is considered a national security risk by the U.S. government. The Biden administration has designated the company a Chinese military entity.
This potential partnership is occurring amidst a severe global memory supply crunch. The unprecedented demand for AI infrastructure has prioritized high-bandwidth memory chips, leading to shortages for consumer electronics like iPhones and MacBooks. This crunch has resulted in significant price increases and delays.
Apple has acknowledged the rising costs of memory, with CEO Tim Cook noting a '100-year flood' in pricing. The company has already increased prices on some products and anticipates further hikes. Other American tech companies like Acer, HP, and Asus are also reportedly sourcing from CXMT, highlighting the severity of the supply chain issues.
