Apple Considers Chinese Memory Chip Suppliers Amidst Supply Constraints

Apple has begun raising prices across its product lineup, though the iPhone has miraculously been spared for now. With memory supply constraints tightening, and upward pressure on pricing continuing, the Cupertino giant has decided to pass costs along to customers rather than continue absorbing them. While Apple is ostensibly working behind the scenes to secure more inventory, that doesn't mean the iPhone 18 Pro will avoid a price hike.

Navigating the Memory Shortage

To navigate the memory shortage, Applereportedly wants to add Chinese semiconductor companies ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co (YMTC) to its supply chain, which currently relies on South Korean companies Samsung and SK Hynix, and American firm Micron Technology. The company has already started testing CXMT's DRAM chips while intensifying lobbying efforts to counter any political resistance, even though it doesn't need government approval.

Technical Constraints Affecting the iPhone 18 Pro

The iPhone 18 Pro is rumored to ditch the package-on-package (PoP) tech, where the DRAM is placed on top of the application processor, in favor of a Wafer-Level Multi-Chip Module (WMCM) design. WMCM shifts the DRAM to the side of the package. The transition requires tight coordination between memory manufacturers and Apple's chipset team. Because Samsung and SK Hynix have been working with Apple for years, they are better positioned to optimize components for the A20 Pro chip.

Since the standard models will be released next year, the iPhone 18 may incorporate CXMT's tech, and hopefully avoid the brutal price hike rumored for the iPhone 18 Pro.

Beyond Price: Securing Future Memory Supply

Apple isn't looking to expand its supplier pool solely to cut costs. An estimated 15–20% of the memory capacity reserved for consumer electronics this year might be swallowed up by data centers in 2027. By onboarding more partners, Apple is trying to ensure that it actually has enough memory components to meet its shipment targets.

Limited Impact and Operational Relief

Even if CXMT chips do make the cut for the standard iPhone 18, their use will likely be limited to China-bound models. Ultimately, bringing CXMT and YMTC into the fold is a move to ease Apple's operational pains, rather than shield consumers from sticker shock.