Chinese memory chipmaker CXMT has refused a request from Apple for a price cut during negotiations, according to a report from Korean publication Digital Daily cited by Wccftech. Apple has reportedly been interested in sourcing chips from CXMT and has lobbied the US government for permission to buy its products for devices sold outside the country.
The report says CXMT's stronger negotiating position stems from high demand for its output from domestic Chinese companies including Huawei and Xiaomi, which have locked in CXMT's DRAM production in advance through high-priced agreements similar to contracts used by Samsung and SK hynix. Apple sought a price cut to ease pricing pressure on its smartphones and the upcoming 2026 iPhone, but CXMT instead quoted prices at or above those charged by the Korean firms. An industry official quoted in the report said CXMT is effectively controlling the price floor of the commodity DRAM market.
Samsung and SK hynix have shifted focus toward high-value HBM memory chips for data centers rather than commodity DRAM, a shift that has benefited from the reduced need to supply lower-priced chips to Chinese firms, according to the report. Separately, Reuters reported that Samsung and SK hynix are evaluating chipmaking equipment from China's AMEC, which is priced 20-30% below Western alternatives, for potential use in their China-based memory fabs as a hedge against future US export controls. Samsung and SK hynix have denied testing AMEC equipment. The US Commerce Department revoked the companies' Validated End User status for their China fabs in 2025, replacing it with an annual licensing regime currently valid through 2026.
CXMT's growing strength follows an $8.6 billion initial public offering in July, after which the company began considering a sixth DRAM fab in China, according to Tom's Hardware citing Reuters. If all announced projects proceed, CXMT's production capacity could more than double in the mid-term. Investment banker Dan Niles has said China could capture 30% of the global DRAM market by 2030, according to P Equity Research.
China is also making progress on domestic chipmaking tools that could reduce reliance on foreign equipment makers. Tom's Hardware reported that China has begun low-volume production of domestically developed immersion DUV lithography machines, with about five systems planned this year and roughly 20 in 2027. The manufacturer, Shanghai Aishengna Electronic Technology Group, is a state-owned company formed in 2023 that absorbed engineering teams from a Huawei-affiliated startup and a state scanner maker. The first units are due at SMIC, Hua Hong, and CXMT this year for production-line validation, though the machines are reported to still lag ASML's models.
Wccftech also noted separately that the Trump administration is preparing a minimum import price and tariffs on polysilicon and related products from China, a key input for solar panels and silicon wafers, aimed at protecting US polysilicon producers against Chinese competition.