Apple’s attempt to use Chinese memory maker CXMT as a bargaining chip against Samsung and SK Hynix has reportedly failed, leaving the two Korean chipmakers with more pricing power than before, according to DigiTimes.
The strategy was straightforward: Apple has been exploring CXMT and fellow Chinese chipmaker YMTC as potential DRAM suppliers this year, progressing as far as testing CXMT’s chips.
The goal was to present a credible alternative that would pressure Samsung and SK Hynix into lowering their prices, a negotiating tactic Apple has deployed before with OLED suppliers and contract manufacturers.
Memory costs have been climbing, contributing to price increases across nearly the entire Apple lineup.
Why the Pressure Campaign Failed
The plan ran into a structural problem. U.S. export controls bar CXMT from accessing EUV lithography equipment, forcing the company to rely on older DUV technology.
That constraint requires roughly 30% more wafer starts to produce equivalent output, which pushes CXMT’s costs high enough that matching Samsung and SK Hynix’s prices represents a floor rather than a discount.
When Apple pushed for lower LPDDR5X pricing, CXMT declined, quoting rates at or above those of the Korean suppliers.
CXMT also had little reason to negotiate. Chinese device makers Huawei and Xiaomi have already committed to long-term, high-priced contracts that account for most of the company’s output, according to Digital Daily, meaning CXMT doesn’t need Apple’s business badly enough to compete on price.
A Tighter Market Than Before
With no credible cheaper alternative to point to, Apple lost the leverage it was counting on.
Samsung and SK Hynix now face less pressure to cut prices, and both companies are simultaneously redirecting production capacity toward high-bandwidth memory for AI servers, tightening the broader DRAM market further.
The outcome matters for Apple customers because DRAM costs feed directly into device pricing. Memory shortages have already pushed up the cost of almost all Apple products this year, and the failure to negotiate a cheaper supply path removes one option Apple had for managing that pressure.
The CXMT exploration has also drawn political scrutiny. U.S. senators have written to Apple demanding a commitment that the company will not purchase Chinese memory chips, adding a second layer of pressure on a sourcing strategy that has now produced neither lower prices nor a workable new supplier.
