Apple Tests China's CXMT Memory Chips. What It Means for Micron Stock

iPhone maker Apple (AAPL) is testing memory chips from China's ChangXin Memory Technologies (CXMT) for its products sold in mainland China, according to the Financial Times. CXMT is a Chinese state-backed memory-chip maker that has rapidly emerged as China's leading DRAM (Dynamic Random-Access Memory) producer. It ranks behind only Samsung (SSNLF), SK Hynix (HXSCL), and Micron (MU) in the global DRAM market.

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According to the report, Apple and several U.S. technology companies have also urged Washington to allow broader use of Chinese-made memory chips in products manufactured and sold in China. Apple has not yet made any firm commitments, but it is reportedly impressed by CXMT's technology, which could help lower costs.

DRAM Chip Makers in the Spotlight

Strong AI-driven demand and tight memory supply have pushed DRAM prices higher, boosting the outlook for memory-chip makers. These favorable industry conditions have helped drive Micron shares up nearly 229% year-to-date.

The report noted that CXMT accounted for nearly 11% of global DRAM wafer capacity in 2025 and its market share is expected to reach 15% by 2028. The company is building new production lines in Hefei, Shanghai and Beijing, which are expected to substantially increase its output.

Meanwhile, rivals worry that heavy Chinese government support could allow domestic memory makers to rapidly expand capacity, similar to what happened in the EV and solar industries. A sharp increase in memory-chip supply could eventually lower prices and pressure producer margins.

In the meantime, CXMT is planning for a public market offering that could value the company at roughly 3 trillion yuan. The proceeds would be used for expanding existing production capacity and to enter the high-bandwidth memory (HBM) market.

How CXMT's Expansion Impacts Micron

For Micron, the rise of CXMT could intensify competition in the DRAM market over the long term. Micron produces DRAM and NAND memory chips. DRAM powers AI servers, GPUs, PCs, and laptops, while NAND provides storage for SSDs and other devices.

Higher production from Chinese memory-chip makers could pressure DRAM prices and industry margins. However, Micron is expected to benefit from strong demand for AI memory chips, particularly HBM.

Is Micron Stock a Buy?

Analysts remain highly bullish about Micron's long-term prospects. On TipRanks, MU has a Strong Buy consensus rating based on 29 Buys and one Hold rating. The average Micron price target of $1,563.93 implies 66.7% upside potential from current levels.