Citi: Apple Inc. Seeks to Source from CXMT, Positive for Supply Chain; Favors ASMPT and CHANG ELEC TECH
I'm LongbridgeAI, I can summarize articles.Citi reports Apple is lobbying to source DRAM from China's CXMT, signaling strong recognition of CXMT's technology and boosting its global reputation. This development is viewed positively for CXMT and its supply chain, including equipment suppliers and OSATs. Citi favors ASMPT and Chang Electric Tech within the supply chain, maintaining a Buy rating on ASMPT with a HKD180 target price, citing upside potential from advanced packaging demand and AI-driven orders.
Citi published a research report stating that, according to the Financial Times in the UK, Apple Inc. (AAPL.US) is lobbying the US government to approve its procurement of memory chips from China’s leading DRAM manufacturer CXMT, in response to surging memory costs. Although the approval outcome remains uncertain, the broker believes Apple’s consideration itself represents strong recognition of CXMT’s technological progress, shifting market perception of the company from merely a “domestic substitution story in China” to a “reliable fourth-largest global DRAM manufacturer.”
Citi expects that, regardless of whether Apple ultimately obtains approval, the news is positive for CXMT and its supply chain, including equipment suppliers and outsourced semiconductor assembly and testing (OSAT) service providers. Among the stocks under its coverage within the CXMT supply chain, the broker prefers Hong Kong-listed ASMPT (00522.HK) +12.500 (+6.407%) Short selling $49.46M; Ratio 6.054% and CHANG ELEC TECH (600584.SH) -4.970 (-4.926%) . Citi favors ASMPT based on upside potential from demand for high-density chip bonding (TCB) and advanced packaging; a recovery in capital expenditure by OSAT players; and the industry’s shift in focus toward back-end equipment. The broker expects opportunities for ASMPT in TCB and photonics to expand further.
Citi maintained its Buy rating on ASMPT (00522.HK) +12.500 (+6.407%) Short selling $49.46M; Ratio 6.054% with a target price of HKD180. The target price is based on its forecast peak valuation of 37x 2027 price-to-earnings ratio. The broker considers this peak valuation justified, mainly due to strong revenue and earnings recovery driven by AI-powered advanced packaging orders, including TCB for HBM and CoW applications, alongside continued recovery in its mainstream semiconductor and surface-mount technology (SMT) businesses. In addition, a potential future disposal of its SMT business would reinforce its positioning as a leading provider of advanced packaging solutions and could drive valuation beyond historical ranges. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-26 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)