Apple reported to be testing CXMT memory chips for use in its products

Media reports say Apple is currently evaluating memory chips from China's Changxin Memory Technologies, or CXMT, as potential components for some of its products to ease supply shortages driven by the AI boom.

The Wall Street Journal on Sunday reported that Apple has been testing CXMT's memory chips for use in iPhones and MacBooks and held preliminary discussions with the semiconductor giant on component supply.

The report says Apple expects to use those chips in products for the Chinese market, adding Apple would gain more leverage in negotiations if it can secure stable supply from Chinese equipment makers in order to offset the immense cost pressure. Yet the proposal still awaits White House approval.

Reuters earlier reported that CXMT is weighing building a second memory chip plant in Beijing to expand production capacity.

Computer makers HP and Acer are also reportedly using CXMT chips in their products destined for non-US markets.

The US Defense Ministry in June expanded its blacklist of Chinese military-related companies to include 188 firms, including CXMT, alleging they have participated or funded the Chinese military without providing substantial evidence.

Last month, bipartisan senators wrote to Apple CEO Tim Cook to urge the company not to use chips manufactured by companies with Chinese military background.

Under prevailing American legislation, US companies are restricted from technology sharing with CXMT, and Apple is effectively prohibited from procuring tailored chips from the supplier for its hardware lines.

But some legal experts say Apple is still permitted to procure off-the-shelf chips from CXMT, though it may be compelled to make design tweaks.