Apple has reportedly been negotiating with the U.S. government to get clearance to use sanctioned Chinese memory maker CXMT in its products. According to a report from the Financial Times, Apple is in talks with the U.S. government to clear the previously blacklisted Chinese entity. The U.S. government had earlier placed Chinese memory maker CXMT on a sanctions list, preventing American companies from purchasing products like the now highly sought-after DRAM. This has created a challenging situation given the severe supply shortage the entire industry is facing. Since the big three—Samsung, SK hynix, and Micron—are ramping up capacity at an insufficient rate, sourcing DRAM from another supplier would help ease the pressure on electronics makers by providing better pricing, more supply, and facilitating product shipments.

CXMT is capable of manufacturing the latest DDR5 and its low-power sibling LPDDR5X memory. Late last year, the company showcased DDR5-8000 and LPDDR5X-10667 DRAM modules that are in mass production. These memory modules are available in 12 Gb and 16 Gb LPDDR5X capacities, while DDR5 scales to 16 Gb and 24 Gb module formats. However, a significant problem remains. Even if Apple gets clearance from the U.S. government to use CXMT memory, the company likely can't satisfy domestic demand first before shipping the quantity that Apple would require. Some estimates suggest CXMT could reach over $50 billion in revenue by 2026, according to SemiAnalysis, indicating that domestic demand is so strong that CXMT is rapidly selling out wafers.

Earlier this year, we learned from local Chinese media that Apple was considering partnering with Chinese semiconductor manufacturers CXMT and YMTC for its upcoming iPhone 18 series and potentially other products like MacBooks and Mac computers. YMTC would supply NAND Flash, which could make a significant impact, as the company is producing its fifth-generation 3D NAND memory chips, while CXMT would handle DRAM. It seems these reports had a lot of substance, considering that Apple is now trying to get the use of CXMT cleared.