CXMT Rejects Apple and Taiwanese Server Maker DRAM Deals as It Prioritizes China Self-Sufficiency

CXMT is not offering concessions in the DRAM category and is rejecting deals with foreign customers, according to a new report. The report states the Chinese firm not only aims to compete with Micron, Samsung, and SK hynix, but is also rejecting deals to pursue self-sufficiency in China’s memory sector. Taiwanese server manufacturers have also been rejected, and CXMT is described as barely able to keep up with demand from local customers.

Notably, the company has supplied local partner Xiaomi with LPDDR6 DRAM shipments for its in-house XRING 03. According to the report, CXMT has apparently rejected both Apple’s memory quote and a Taiwanese server manufacturer. Apple wanted a cheaper supply compared to Micron, SK hynix, and Samsung, while the Taiwanese customer required DDR5 chips.

According to semiconductor industry observer and former general manager of Microdrive Technology, Wu Chin-jung, CXMT’s rigidity stems from a grand plan to achieve self-sufficiency in DRAM for China. Since this plan involves catering to Chinese customers first, CXMT is forced to reject quotes from global giants like Apple.

Asia-Pacific research firm Yole’s Huang Mao-yuan believes CXMT already has a mountain to climb in meeting demand from Chinese customers. The report says the goal to meet domestic DRAM requirements could last a decade, and that the underlying achievement will be that the likes of Huawei and Xiaomi will not have to source memory from Samsung or SK hynix.

Within a year, CXMT is estimated to add 100,000 DRAM wafers per month, but its biggest hurdle is HBM development. The manufacturer is a latecomer in this category, and U.S. export controls prevent CXMT from obtaining cutting-edge equipment like EUV machinery that helps sustain yields and curb packaging challenges. The company reportedly cut stock of its HBM supply by 25 percent due to egregious yields, and its HBM technology is two generations behind the three major manufacturers, with catching up not expected to be easy.