Cheryl Casson and Rob Summell discuss the news that Apple might be testing memory chips from CXMT, a Chinese manufacturer, for its iPhones and MacBooks. This comes as the Chinese government is investing significantly to compete with the United States in the realm of artificial intelligence.
Recent reports suggest that Apple is experimenting with memory chips produced by Chinese company CXMT for its devices, including iPhones and MacBooks, as a response to ongoing memory chip shortages.
A report released on Sunday indicated that Apple has engaged in preliminary discussions with CXMT regarding the provision of chips for products sold in China, according to sources familiar with the situation.
Apple anticipates receiving approval from the White House for this deal. However, scrutiny is expected under regulations designed to prevent U.S. companies from transferring technology or sensitive information to Chinese firms like CXMT.
While the current rules permit Apple to purchase standard components from CXMT, they forbid the ordering of custom chips tailored to Apple’s specifications. Should this deal proceed, Apple may need to modify parts of its products that utilize standard chips from CXMT for the Chinese market.
Apple’s iPhone sales rebound, with June quarter figures reaching record levels. Meanwhile, Chinese AI is also bringing attention to chefs.
According to reports, Apple is exploring the use of chips from CXMT in its devices intended for sale in China. (CFOTO/Future Publishing via Getty Images)
Manufacturers like HP and Acer have also managed to secure small amounts of memory chips and are seeking additional supplies for the upcoming year, as reported by another outlet.
Amid rising costs fueled by demand from AI companies, Apple has been increasing the prices of its products worldwide, blaming the shortages of memory chips.
Apple raises prices for iPad and MacBook due to rising cost of memory chips
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| AAPL | Apple Inc. | 304.91 | -3.35 | -1.09% |
CXMT stands as the largest chip maker in China by market value, and the report highlights its rapid growth as a DRAM memory chip supplier globally.
Additionally, there are indications that CXMT has reached its production limit this year and is contemplating the establishment of a second memory chip factory in Beijing to boost output.
The company is focusing on high-tech customers within China and has plans to more than double its production capacity by 2028, according to sources.
Apple to invest $30 billion in U.S. chip manufacturing
This year, Apple’s product prices have been elevated due to the ongoing AI boom, which has contributed to rising memory chip costs. (Kevin Carter/Getty Images)
However, U.S. companies face restrictions in dealing with CXMT, as it is listed by the Department of Defense due to its connections with the Chinese military.
This listing reveals CXMT’s direct and indirect links to the Chinese government’s Ministry of Information Technology, as well as to bodies that oversee state-owned enterprises.
FOX Business is reaching out to both Apple and CXMT for their comments on this situation.
Reuters contributed to this report.
