Apple eyes CXMT DRAM despite Pentagon blacklist, as DRAM prices surge

Apple is lobbying the Trump administration to obtain DRAM chips from ChangXin Memory Technologies (CXMT), a Chinese DRAM producer listed on the Pentagon’s 1260H blacklist. The key issue is compliance: Apple is seeking assurances that sourcing from CXMT will not trigger the company’s placement on the more restrictive Entity List. The move comes as DRAM prices have reportedly quadrupled, driven by supply shortages and strong AI-related demand. CXMT can reportedly offer commodity DRAM at a 10–30% lower price than Apple’s current suppliers. CXMT holds an estimated 6–8% share of the global DRAM market, where the industry is dominated by Samsung, SK hynix, and Micron. CXMT’s product focus is commodity DRAM (used broadly in consumer electronics), not high-bandwidth memory (HBM), which currently supports higher margins for Samsung and SK hynix. Notably, being on the 1260H list does not fully ban sales to US companies; it mainly restricts certain US investment activities and carries reputational impact—something Apple appears to be trying to keep distinct from Entity List restrictions. In parallel, CXMT is preparing a major IPO on China’s STAR Market, targeting about 29.5 billion yuan (around $4.3 billion) in the second half of 2026. If Apple’s efforts succeed, it could validate CXMT’s demand story for IPO investors and potentially pressure margins in the commodity DRAM segment. Apple’s involvement is likely to be a market-moving signal for DRAM pricing and competition, but it is more supply-chain and tech-policy related than a direct crypto catalyst.