Apple is focusing on adding Chinese memory manufacturer CXMT to its DRAM supply chain to reduce shortage risks rather than secure lower prices.
The move comes as AI datacenters are expected to consume more than 60 percent of global memory shipments by next year. However, Apple must also secure approval from the Trump Administration before developing a supply agreement with the Chinese company.
Meanwhile, CXMT has started research and development on a new form of DRAM designed to improve performance and capacity while using older deep ultraviolet lithography equipment.
According to a report from Korea Economic Daily, CXMT is testing Wafer-to-Wafer Hybrid Bonding technology at a pilot production line in Hefei, China.
The technology, also known as bonding DRAM, replaces traditional microbumps used to connect DRAM chips. Instead, manufacturers precisely align and fuse two wafers.
CXMT’s main objective is to use the technology for the mass production of high-density memory.
Bonding DRAM production also separates the memory cell array from the peripheral control logic circuits.
Manufacturers place the two components on different wafers, allowing each part to use a separate production process. This approach can improve the final design and production outcome.
Removing traditional microbumps also saves physical space while reducing latency and parasitic electrical resistance.
High-density DRAM can provide faster data transmission while consuming less power because it uses shorter wiring.
The technology can increase memory density without expanding the chip’s horizontal footprint. This could free up space on an iPhone logic board and give Apple more room to install other components.
The potential space savings and increased memory capacity could make CXMT’s technology particularly attractive to Apple.
US sanctions have restricted China’s access to advanced semiconductor manufacturing equipment, including specialised extreme ultraviolet lithography machines.
However, CXMT’s bonding DRAM development does not require this expensive equipment. The company can reportedly develop the technology using existing deep ultraviolet machines.
Samsung and SK hynix currently control most of the global DRAM market. However, the report claims that China could narrow the technology gap within three to five years.
China also holds 119 patents related to the technology.
Apple frequently secures priority access to TSMC’s next-generation chip production capacity because of the size of its orders.
The company could follow a similar strategy with CXMT by securing high-density DRAM supplies before competitors gain access.
A major order from Apple could make the iPhone maker one of CXMT’s most valuable customers, potentially giving it significant influence over supply arrangements.
A potential partnership would still require approval from the Trump Administration.
CXMT has also only reached the research and development stage. It could take several years before the company begins mass production of high-density bonding DRAM.
The technology may also fail to meet Apple’s quality requirements, which could lead the company to reject it.
Several uncertainties therefore remain, and Apple and CXMT have not yet confirmed an actual supply partnership.
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