Apple is reportedly testing memory chips made by Chinese chipmaker CXMT for some of its products, including iPhones and MacBooks. The move comes at a time when memory chip prices are rising sharply due to strong demand from artificial intelligence companies.
According to a report by The Wall Street Journal, the Cupertino-based tech giant has held early discussions with CXMT about becoming a memory chip supplier. The company is exploring the possibility of using CXMT components in some devices that would be sold in China.
The report, citing people familiar with the matter, said the iphone maker has been waiting for approval from the White House before moving ahead with any deal involving CXMT.
Apple has reportedly been discussing whether the Chinese company’s memory components could be used in its products while staying within US restrictions.
The move could help Apple deal with rising memory costs.
The company has already increased prices for some products in markets around the world, with higher memory chip costs being one of the factors behind the price increases.
For Apple, sourcing memory components from CXMT could also provide another option at a time when global supplies are under pressure.
However, CXMT may not be able to immediately solve Apple’s supply problem.
The Wall Street Journal reported that US rules restrict American companies from sharing certain technology with CXMT. However, the rules allow US companies to buy off-the-shelf components from the Chinese chipmaker.
CXMT is also facing its own production limits.
According to the report, the company has already reached its production capacity for this year. HP and Acer have reportedly secured limited supplies from CXMT and are looking to increase their orders in the coming years.
CXMT has quickly grown as a DRAM supplier, which is one of the most commonly used types of memory. Its second-quarter revenue has reportedly increased more than eight times from earlier levels, helped by strong demand and rising memory prices.
