Apple is testing memory chips made by China's ChangXin Memory Technologies (CXMT) and has not ruled out using the company as an additional chip supplier, The Wall Street Journal reported, citing people familiar with the matter.
According to the newspaper's sources, Apple is trialing the chips amid a broader memory shortage driven by growth in artificial intelligence and rising memory prices. CXMT is on the Pentagon's restricted entity list because of alleged ties to China's military, which the report said creates risks for the American company.
Testing across devices
The Journal reported that CXMT chips are being tested on several device lines, including the iPhone and MacBook. Apple has already held talks with the Chinese company about using its components in devices to be sold in China, according to the report.
Legal limits on cooperation
Under U.S. restrictions, American companies cannot share their technology or product specifications with Chinese firms on the blacklist, meaning Apple cannot order custom-made chips. Apple can still buy CXMT's standard components and negotiate pricing, Akin Gump lawyer Kevin Wolf told the newspaper.
The report follows earlier news that Apple has faced problems securing enough RAM modules. TSMC, Apple's key chip manufacturer, has also accumulated about $1 billion worth of unfinished chips due to the memory shortage. Analyst Tim Culpan said a shortage could hit the market as soon as Apple announces the iPhone 18 Pro and a foldable Apple smartphone.
