Apple’s search for cheaper DRAM alternatives hits a dead end

Apple’s attempt to use Chinese memory maker CXMT as leverage against Samsung and SK Hynix has failed, ultimately strengthening the pricing power of the Korean suppliers. Apple explored CXMT and YMTC as alternative DRAM sources due to global memory shortages, hoping competition would force Samsung and SK Hynix to lower prices. However, CXMT’s reliance on older DUV lithography—restricted from using EUV tools—means its production costs are higher, preventing it from offering cheaper LPDDR5X quotes. When Apple pushed for lower pricing, CXMT refused and held rates at or above Korean levels. Meanwhile, Huawei and Xiaomi have already secured most of CXMT’s output through long-term, high-price contracts, leaving CXMT with no incentive to negotiate with Apple. With the Chinese alternative neutralized, Samsung and SK Hynix face less pressure to reduce prices while shifting production toward high-bandwidth memory for AI servers, tightening DRAM supply further. The setback comes amid political pushback urging Apple not to rely on Chinese memory suppliers at all.

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