CXMT refuses to supply Apple with lower-priced memory chips — ECNS

Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT), according to ECNS, citing Wccftech, has refused to supply Apple with memory chips at a lower price. Apple had asked CXMT for a price below the current offers from Micron, Samsung Electronics, and SK Hynix.

Supply terms

Memory suppliers usually provide substantial discounts to secure long-term orders from major international customers. However, CXMT, according to the publication, did not agree to the price requested by Apple.

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Production capacity

Analysts suggested that CXMT’s decision may be linked to prioritizing customers in mainland China due to limited production capacity. In their view, rising demand amid the development of artificial intelligence has tightened the global supply of memory chips, while major manufacturers are increasing output.

CXMT aims to achieve self-sufficiency in the production of DRAM dynamic random-access memory and, analysts expect, may prioritize domestic buyers for a long time. In a financial report released in August, the company said that its DRAM chips had already entered the supply chains of Chinese smartphone manufacturers Xiaomi, Transsion, Honor, OPPO, and vivo.