The Financial Times revealed last week that chips from Chinese memory giant CXMT (ChangXin Memory Technologies) are being tested by Apple for potential use in devices sold within China. The article features a detailed profile of CXMT’s rise in the global memory market, backed by the Chinese government. It quotes analysis from Emory Tsai-Yi Wang, DSET’s non-resident fellow, who deconstructs the government support network behind the company, the associated geopolitical tug-of-war, and CXMT’s prospects in entering the High Bandwidth Memory (HBM) market.
The report first cites two sources stating that Apple has not only begun testing CXMT’s DRAM products but has also led a lobbying effort among US tech companies to get the US government to allow broader use of the company’s products. The report describes this as a major turning point for CXMT—a company that has burned through billions of dollars over nearly a decade but is now poised to become a vital pillar in China’s efforts to build a domestic AI supply chain. Wang commented in the article: “China has very high expectations of CXMT. It has emerged as the leader in the race to find a local memory chip champion and is critical to the nationwide project to build a self-sufficient AI supply chain.”
Analyzing CXMT’s rise, the report notes that the company was founded with the goal of building domestic fabs and reducing reliance on imports. State-owned shareholders hold a 36% stake in CXMT, and the Hefei municipal government has long provided heavy support. Beyond cheap land, funding, and subsidies, Hefei has helped attract suppliers and customers to the city, creating an industrial cluster around CXMT. Statistics show the company received at least $880 million in official subsidies between 2023 and 2025. Wang added that much of the Hefei government’s support is intangible, such as connecting CXMT with suppliers and customers—those relationships were critical. Additionally, the report cites several analysts estimating that the forthcoming IPO could bring over RMB 1 trillion in revenue to Hefei, equivalent to the city’s entire annual Gross Domestic Product (GDP).
The report points out that amid tight global memory supplies, CXMT has become an attractive option due to its capacity advantages. It has now risen to become the world’s fourth-largest DRAM manufacturer, trailing only SK Hynix, Samsung Electronics, and Micron. However, companies with Chinese backgrounds remain highly politically sensitive—Apple has previously faced public pushback from US policymakers when it last explored using Chinese memory suppliers, including then Republican senator Marco Rubio, who flagged security risks in 2022.
Despite CXMT’s rapid growth and plans to increase production, analysts say additional Chinese supply is unlikely to ease memory chip prices soon, as virtually all of its output is already committed and demand continues to grow. Over the longer term, however, competitors fear a repeat of the pattern seen in Chinese industries from solar panels to electric vehicles: years of state-backed investment followed by rapid capacity expansion and falling prices that squeeze foreign rivals.
Beyond the DRAM sector, the report analyzes CXMT’s prospects of cracking the HBM industry to capture a share of the AI accelerator supply chain. Wang analyzed that because CXMT is barred from purchasing Extreme Ultraviolet (EUV) lithography machines from ASML, it can currently only improve its manufacturing processes through repeated trial and error. This keeps yield rates low, having an impact on its HBM business. The report also notes that this equipment bottleneck makes CXMT’s production costs higher than those of its competitors.
Nevertheless, the report indicates that few industry experts doubt Beijing’s commitment to developing HBM technology. Profits from conventional DRam, together with proceeds from the forthcoming IPO, are expected to fund a multiyear push into HBM.
Regarding China’s strategic layout, Wang analyzed: “China has concluded that self-sufficiency is ultimately more important than relying on foreign suppliers, and CXMT has become central to that ambition. Chinese AI companies will adopt CXMT’s memory because they share the same strategic objective.”
Tsia-Yi Wang, a non-resident fellow at DSET’s Economic Security Research Program, published the report “The Rise of CXMT: Inside the Hydra-like Chinese Memory Sector” in 2025. This report serves as a prequel, revealing the early days of CXMT: How it manages to distinguish itself from multiple semiconductor projects a decade ago and how it has remained active on the global stage despite mounting U.S. restrictions.
