Apple reportedly wants to source memory from two Chinese suppliers — CXMT and YMTC — for its products. Previous rumors suggested Apple lobbying for CMXT’s approval from the US government.
However, a new report from Bloomberg suggests the company is also looking to secure DRAM from YMTC.
Chinese memory chips for Chinese units
The DRAM and NAND supply crunch forced Apple to recently hike prices of MacBooks, iMacs, iPads, Mac mini, Mac Studio, Apple TV and even HomePods. The increase pushed the prices of some Mac models up by more than $1,000.
To diversify its supply chain and potentially secure memory chips at lower prices, Apple wants to bring ChangXin Memory Technologies Co. (CXMT) and Yangtze Memory Technologies Co. (YMTC) on board as suppliers.
Both Chinese memory companies are banned by the U.S. Department of Defense. So, Apple is seeking the US government’s approval before moving forward with the deal. The company does not explicitly need permission, especially since it only plans to use these chips in devices sold in China. Still, it wants to avoid any potential legal issues in the future.
Bloomberg reports that Apple held discussions with the two Chinese memory suppliers recently. However, the deal is far from being finalized.
Apple CEO Tim Cook also spoke with certain U.S. government officials about this. As part of the proposal, the company would use memory chips from these two Chinese suppliers exclusively in devices sold in China. This will also free up additional memory chips to cater to the U.S. market.
There’s not enough memory to meet demand
Even if Apple secures the necessary approvals from the U.S. government, its plans may still face a hurdle. There’s no guarantee that CXMT and YMTC can supply it with enough memory chips. Both companies are already operating at full capacity and are struggling to meet demand from local Chinese companies.
There’s another issue. The Chinese government may not allow CXMT and YMTC to supply Apple with memory chips, given the significant shortage.
More importantly, even if everything goes according to plan, Apple is unlikely to reverse its Mac and iPad price hikes anytime soon.
Rajesh has been writing about consumer technology for over a decade, with a strong focus on iPhones, Macs and Apple’s ecosystem. He enjoys digging into Apple software updates, hardware changes, and discovering new Mac apps that make work faster and more enjoyable.
You can reach out to him at mail[at]rajeshpandey.me.
