Apple wants to buy memory chips from China’s top DRAM producer. The catch: that producer, ChangXin Memory Technologies, sits on the Pentagon’s blacklist.
According to the Financial Times, Apple has been lobbying the Trump administration since early May 2026 for permission to source DRAM from CXMT, a company flagged on the Pentagon’s 1260H list for alleged ties to China’s military. The conversations have included officials at the Commerce Department, with Apple seeking assurances that doing business with CXMT wouldn’t trigger the company’s addition to the more restrictive Entity List.
The motivation is straightforward: DRAM prices have reportedly quadrupled, driven by supply shortages and insatiable demand from AI applications. CXMT can offer chips at 10-30% less than Apple’s current suppliers.
The CXMT factor
ChangXin Memory Technologies currently holds an estimated 6-8% share of the global DRAM market. The DRAM industry is dominated by just three players: Samsung, SK hynix, and Micron.
CXMT is also preparing for a major IPO on China’s STAR Market, targeting roughly 29.5 billion yuan, approximately $4.3 billion. That listing is expected in the second half of 2026.
CXMT’s product lineup focuses primarily on commodity DRAM, the kind of memory used in everyday electronics, not the high-bandwidth memory (HBM) chips that are currently driving profits for Samsung, SK hynix, and Micron.
Being on the 1260H blacklist doesn’t actually prohibit CXMT from selling chips to American companies. The list restricts certain US investment activities and carries reputational weight, but it’s not the same as the Entity List, which effectively cuts off a company from US technology entirely. Apple’s discussions with Commerce Department officials appear designed to keep that distinction intact.
Why Apple is taking this risk
Apple ships hundreds of millions of devices per year, each containing DRAM. Even modest per-unit savings from a cheaper supplier compound into billions of dollars across an annual production cycle. CXMT’s 10-30% price discount on commodity DRAM represents exactly the kind of relief Apple’s procurement team is looking for.
Apple’s approach, going directly to the administration rather than quietly placing orders, suggests the company is trying to get ahead of potential blowback. A surprise revelation that Apple was buying from a Pentagon-blacklisted Chinese company would be a PR nightmare. Getting implicit or explicit government approval first is the safer play.
What this means for the memory chip market
If Apple successfully opens a purchasing channel with CXMT, it introduces a new variable into DRAM pricing. CXMT won’t threaten the high-margin HBM business that’s driving profits at Samsung and SK hynix. But in the commodity DRAM segment, additional supply from a price-competitive Chinese producer could put downward pressure on margins for all three incumbents.
For Micron specifically, this could be concerning. Micron derives a larger share of its revenue from commodity DRAM compared to its Korean competitors, who have pivoted more aggressively toward HBM.
CXMT’s upcoming $4.3 billion IPO adds another layer. A successful listing would give CXMT significant capital to expand production capacity. Apple’s interest serves as a powerful signal to IPO investors that CXMT has credible demand from the world’s most valuable company.