Apple Seeks U.S. License to Buy CXMT Memory Chips to Curb AI-Driven Costs
AAPL•Apple petitioned the White House and Commerce Department for licenses to buy DRAM and NAND chips from blacklisted Chinese supplier ChangXin Memory Technologies to offset AI-driven memory cost inflation. Wedbush’s Dan Ives says markets overreacted to Apple’s $150–$200 price hikes on iPhone and MacBook models driven by rising memory costs.
1. Government License Request
Apple has approached the White House, Commerce Department and other administration entities to secure U.S. export licenses required to purchase DRAM and NAND memory chips from ChangXin Memory Technologies, which is on the Commerce Department’s Entity List and designated as a military-affiliated Chinese company.
2. Blacklist and Memory Supply
ChangXin Memory Technologies was added to the Entity List last year, making exports subject to license requirements that are typically denied; Apple aims to tap CXMT’s DRAM and NAND capacity as global AI-driven demand has tightened memory supply and driven pricing higher.
3. Component Cost Pressures
Rising AI-related demand has pushed memory chip prices up, prompting Apple to increase retail prices by $150–$200 on new iPhone and MacBook models to protect margins, which has sparked debate over potential demand elasticity.
4. Market Reaction and Price Hikes
Wedbush’s Dan Ives said the equity markets have overreacted to Apple’s recent price increases, forecasting minimal demand destruction and suggesting a potential catalyst as memory cost pressures stabilize in coming quarters.
