Apple has been evaluating ChangXin Memory Technologies (CXMT), a Chinese memory-chip maker, as a potential supplier of mobile DRAM, including LPDDR5X used in smartphones and other devices. Multiple reports say Apple tested CXMT memory as prices rose from Apple’s regular DRAM suppliers, particularly Samsung Electronics and SK hynix. However, pricing negotiations have not produced a lower-cost deal. TechNode reports that talks between Apple and CXMT reach a price hurdle, with CXMT seeking quotes at or above the levels reportedly paid by Samsung and SK hynix rather than accepting Apple’s requests for discounted pricing. AppleInsider similarly reports that CXMT rejects Apple’s push to reduce prices, citing coverage that frames the dispute as Apple’s attempt to negotiate a price cut that fails. MacRumors adds that Apple’s effort to use CXMT as leverage against the Korean suppliers “backfires,” arguing that constraints affecting CXMT’s production costs and supply position weaken Apple’s leverage. MacRumors also reports that CXMT is tied up with long-term, high-price contracts from Chinese device makers such as Huawei and Xiaomi, further reducing incentives for CXMT to offer Apple lower pricing.
Apple tests CXMT mobile DRAM, but pricing talks hit hurdles
Apple has been evaluating ChangXin Memory Technologies (CXMT), a Chinese memory-chip maker, as a potential supplier of mobile DRAM, including LPDDR5X used in smartphones and other devices. Multiple re...
- Apple is reported to be testing memory made by CXMT, including LPDDR5X.
- Apple seeks cheaper DRAM pricing, but CXMT is reportedly asking for prices at or above rates paid for similar memory by Samsung and SK hynix.
- Reports indicate Apple’s attempt to use CXMT as leverage against Samsung and SK hynix does not reduce their pricing pressure.
- CXMT’s production constraints under U.S. export controls are cited as contributing to higher costs versus leading DRAM suppliers.
- Some sources report CXMT’s capacity is largely committed via long-term contracts with Chinese device makers such as Huawei and Xiaomi.
Apple's attempt to use Chinese memory maker CXMT as leverage against Samsung Electronics and SK Hynix has backfired, with the two Korean chipmakers ending up with more pricing power rather than less, DigiTimes reports, citing South Korean and Chinese trade press. This year, Apple has explored CXMT and fellow Chinese chipmaker YMTC as potential DRAM suppliers, and had progressed to testing CXMT's chips as memory shortages pushed up the cost of almost all Apple devices. Apple hoped a credible Chinese alternative would pressure Samsung and SK Hynix into cutting their own prices, a tactic it has used before with OLED suppliers and contract manufacturers. CXMT is barred from EUV lithography tools under U.S. export controls, so it has to rely on older DUV equipment that, per a cost analysis cited by TechTimes, requires around 30% more wafer starts to produce the same output. That extra cost means matching Samsung and SK Hynix's prices is CXMT's floor, not a discount it's able to offer, so when Apple pushed for a lower LPDDR5X quote, CXMT turned it down and held pricing at or above the Korean suppliers' own rates. With that threat neutralized, Apple seemingly lost its main point of leverage. Digital Daily reports that Chinese device makers Huawei and Xiaomi have already locked up most of CXMT's output through long-term, high-price contracts, so the company doesn't need Apple's business badly enough to negotiate. The result is the opposite of what Apple wanted; without a credible cheaper alternative to point to, Samsung and SK Hynix face less pressure to lower their own prices, at the same time they're shifting production toward high-bandwidth memory for AI servers and tightening the broader DRAM supply. The setback comes after Apple's CXMT plans drew pushback, with politicians demanding Apple commit to not buying Chinese memory chips at all.Tags: China, DigiTimesThis article, "Apple's Bid to Use Chinese Chipmaker as Leverage Backfires" first appeared on MacRumors.comDiscuss this article in our forums
2 hours agoApple has been testing memory made by China's CXMT as a lower-cost supplier as its regular suppliers hike up prices, but CXMT is demanding what Samsung gets paid for RAM.A Samsung LPDDR5X memory chip - Image Credit: SamsungIt was an idea that would help Apple in the short term at best, and it was one that got it repeated criticism from US senators and memory firms. But with the global chip shortage only getting worse because of demands from AI firms, Apple asked Trump to allow it to buy from blacklisted CXMT for use globally.Now according to Korean technology site Digital Daily, however, CXMT has rejected Apple's discount demands. This may not be the end of Apple buying from the firm, though, as reportedly it is specifically the iPhone maker's attempt to negotiate a price cut that has failed. Continue Reading on AppleInsider | Discuss on our Forums
2 hours agoApple is reportedly considering China’s ChangXin Memory Technologies (CXMT), a memory-chip maker, as a supplier of mobile DRAM including LPDDR5X, which is used in smartphones and other devices. Talks over pricing have hit a hurdle. CXMT is reportedly seeking prices at or above quotes from Samsung Electronics and SK hynix rather than accepting Apple’s push […]
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