Companies such as Samsung, SK hynix, and Micron have chosen to prioritize AI customers because they can place mammoth-sized DRAM orders, pushing Apple into a corner as it strategizes how to overcome this supply chain headache. While CXMT was previously reported to be a beacon of hope, the Chinese memory maker is facing a string of problems, suggesting that even as Apple tests the manufacturer’s DRAM in its products, the deal may not progress further.

Testing CXMT DRAM in a variety of Apple products has been discussed previously, but The Wall Street Journal is adamant that the Chinese manufacturer’s memory chips will be used in Apple products sold exclusively in China. While Apple’s aim appears to be broadening its supply chain horizon so it can protect itself from future uncertainty regarding shipments, it matters little if CXMT cannot keep up with demand.

The DRAM maker has already been reported to have rejected Apple’s offer for a discount , suggesting that the company is enjoying premiums for fulfilling orders for other customers. For instance, CXMT had signed a $3 billion deal with Tencent for three years, and seeing as how it has also rejected Huawei’s request for a DRAM price cut , it’s clear that CXMT’s motivation is pocketing the highest margins.

However, if the company is offering no flexibility on DRAM pricing, wouldn’t it make sense for Apple to simply stick with Samsung, SK hynix, and Micron for future orders, especially considering that CXMT is also wrestling with capacity issues? The company reportedly has plans to raise its production limit to 600,000 monthly wafers , the majority of which will, again, be reserved by AI customers.

Apple’s age-old practice of evaluating suppliers takes months of planning and testing, so for it to hastily begin using CXMT’s DRAM in its products is uncharacteristic of the firm, unless the Cupertino firm anticipated that there would be a memory crisis , forcing it to inevitably join hands with CXMT.

Take BOE, for example; the Chinese display manufacturer has been part of Apple’s supply chain for years, yet it’s limited to fulfilling display orders for lower-end iPhones. For the iPhone 18 Pro and iPhone 18 Pro Max, BOE is seemingly excluded from the fold due to quality control issues.

Even if CXMT addresses its capacity constraints, the deal may fall apart due to Apple’s stringent requirements for procuring quality components, and seeing as how the manufacturer’s DDR5 RAM is slower than SK hynix’s at identical speeds , this partnership may not progress beyond the testing phase.

News Source: The Wall Street Journal

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