Apple Seeks Political Leverage to Access Memory Resources from CXMT
Apple is resolutely pursuing avenues to transcend the memory-related restrictions imposed by industry titans Samsung, SK Hynix, and Micron.
The tech giant is apparently prepared to undertake considerable political risks by lobbying the unpredictable Trump administration to facilitate a partnership with China’s CXMT.
This strategy, while fraught with peril, stands as Apple’s most plausible prospect for acquiring essential memory supplies at competitive prices, short of establishing its own fabrication facilities.
Apple Aims for Trump Administration Approval to Secure Bulk DRAM Shipments from China’s CXMT
According to a report by the Financial Times, Apple has initiated discussions with the Trump administration to gain permission for the procurement of memory chips from CXMT, which is currently on a Pentagon blacklist due to its affiliations with the People’s Liberation Army of China.
As part of its campaign, Apple has already engaged with the US Commerce Department and is actively lobbying various administration officials and allies within Washington.
Notably, Apple has recently instituted significant price increases across its Mac and iPad offerings, attributing these hikes to a historical surge in memory prices.
CEO Tim Cook remarked to the Wall Street Journal that the current escalation in memory chip costs is unprecedented in his 40-year industry experience.
To illustrate the severity of the situation, LPDDR5X 12GB contract prices have experienced a threefold increase since Q1 2025, climbing to approximately $120 by late Q1 and into Q2 2026.
Recent figures indicate a rise of $68.8 since the year’s onset, culminating in a current price of $145 per unit, further exacerbated by increasing flash storage costs.
The gravity of Apple’s predicament becomes apparent when considering the composition of its bill of materials (BOM) for the 256GB iPhone 17 Pro, where memory and flash storage accounted for around 9 percent.
In stark contrast, these components are projected to constitute an alarming 27 percent of the BOM for the upcoming 256GB variant of the iPhone 18 Pro.
In the midst of this predicament, CXMT may represent a singular opportunity for Apple’s memory-related exigencies.
Currently, CXMT is aggressively ramping up its production capabilities, planning to increase its output to 300,000 wafers per month by the year’s end from a current rate of 200,000 wafers.
Even if CXMT cannot completely satisfy Apple’s demand, its entry into Apple’s supply chain could empower the tech leader to negotiate more effectively with the dominant players in the sector.
Should the Trump administration acquiesce to Apple’s requests regarding CXMT, it is likely that the flash storage behemoth YMTC will also follow suit, signaling a remarkable re-engagement of Chinese entities within Apple’s logistics framework.
Source link: Wccftech.com.
