Apple (AAPL) shares fell on Monday as the company tested Chinese-made memory chips for select iPhone and MacBook models destined for the China market. The evaluation centers on CXMT, a Chinese DRAM manufacturer that could help Apple navigate tightening global memory supplies. Apple stock traded at $307.11, down 1.90%, after sharp losses earlier in the session before stabilizing near the day's lower range.

Apple Evaluates CXMT Memory Chips for China Devices

Apple has tested CXMT memory chips across multiple product lines as it weighs supply options for devices sold in China, one of the company's largest revenue markets. The company has also held preliminary discussions with CXMT about supplying standard memory components for future Apple products. Any potential agreement, however, must comply with U.S. restrictions governing technology transfers and dealings with sensitive Chinese companies.

Under current U.S. rules, Apple is permitted to purchase standard components but is restricted from ordering chips designed to its own specifications. As a result, Apple may need to modify certain hardware designs if it opts to use standard CXMT chips in devices sold within China. Such an approach could secure additional memory supply while steering clear of custom manufacturing arrangements that are prohibited under existing U.S. policy.

Apple reportedly intends to seek White House approval before advancing any supply arrangement with CXMT for products sold inside China. U.S. authorities are likely to scrutinize the plan, as the Pentagon includes CXMT on a list of companies linked to China's military sector. CXMT also has reported connections to Chinese government agencies responsible for overseeing information technology and state-owned enterprises. The scrutiny reflects a broader pattern of U.S.-China technology restrictions that have complicated American companies' access to Chinese semiconductor suppliers in recent years.

Memory Shortage Drives Apple Toward Alternative Suppliers

A broader memory shortage has placed pressure on electronics manufacturers as data-center demand absorbs an increasing share of advanced chip production. The global DRAM market is concentrated among three dominant suppliers — Samsung Electronics, SK Hynix, and Micron Technology — leaving buyers with limited alternatives when capacity tightens. Apple has raised product prices in several markets, citing higher memory costs and constrained supply. The company has consequently explored additional suppliers capable of supporting production without disrupting major device launches.

HP and Acer have also secured limited CXMT memory supplies as manufacturers search for more accessible DRAM capacity. Both companies are reportedly seeking larger volumes for next year amid persistent shortages across the electronics industry. Their decisions illustrate how memory constraints are compelling major hardware brands to look beyond traditional supply channels.

CXMT has grown into China's largest chipmaker by market value and ranks among the fastest-expanding global DRAM suppliers. The company reached full production capacity this year and has considered building an additional memory plant in Beijing to increase output. It also plans to more than double its current production capacity by 2028 while prioritizing domestic Chinese technology firms. Whether Apple can secure U.S. government clearance for even limited CXMT purchases will be a key indicator of how far American tech companies can work with Chinese semiconductor suppliers under current export controls.