U.S. Lawmakers Urge Apple to Stop Buying CXMT Chips

ChangXin Memory Technologies (CXMT) became China's most valuable company after its July 27 debut in Shanghai, with shares surging over 500% to a market capitalization of 3.54 trillion yuan ($523 billion). The rally follows a global memory supply shortage and escalating demand for AI technology.

On July 30, U.S. Senators Jim Banks and Chuck Schumer urged Apple CEO Tim Cook to stop negotiations to purchase chips from CXMT and Yangtze Memory Technologies Co. (YMTC). The lawmakers cited the presence of both firms on a Pentagon list of companies that support the Chinese military. They argued that relying on these suppliers would make the world's most valuable consumer electronics company dependent on firms designated as Chinese military companies.

Apple CEO Tim Cook has previously described the current memory pricing environment as a "100-year flood," noting significant constraints and limited flexibility within the supply chain. While some analysts maintain that CXMT remains several generations behind industry leaders like Samsung and Micron, others suggest that Chinese government support and domestic mandates could accelerate the company's rise in the semiconductor value chain.