Major PC manufacturers HP Inc. (NYSE:HPQ), Asus, and Acer have reportedly begun incorporating memory chips from China’s ChangXin Memory Technologies (CXMT) amid a global chip shortage.
Major PC manufacturers have qualified CXMT’s DRAM chips and begun using limited quantities in their laptops, reported Nikkei Asia on Tuesday.
CXMT chips currently have limited adoption in laptops, with only a small number of notebook models using them. The Chinese chipmaker is prioritizing production capacity for domestic customers such as Huawei, and laptops featuring CXMT chips are mainly being sold in non-U.S. markets, according to the report.
PC makers are limiting their use of CXMT chips to avoid upsetting major global memory suppliers like Micron Technology Inc. (NASDAQ:MU), Samsung Electronics (OTC:SSNLF), and SK Hynix Inc. ADR (NASDAQ:SKHY).
“The top three memory chipmakers accounted for more than 90% of global market share… It is a seller’s market now. We dare not source too much from CXMT at this moment,” a source told the publication.
Some PC manufacturers have secured enough CPUs and are now urgently seeking additional memory supplies, making them more willing to source chips from any available supplier, including CXMT.
PC and smartphone markets have faced ongoing shortages of memory chips and CPUs since late last year, hence they are seeking alternative sources.
HP, Acer and Asus did not immediately respond to Benzinga’s request for comments.
CXMT Growth Raises Security Concerns
CXMT’s growing adoption is a major boost for the Chinese memory chip maker, though its links to alleged Chinese military ties could create sensitivity for U.S. companies. Notably, CXMT is included on the Pentagon’s 1260H list.
While CXMT denies the allegations and is not on a trade blacklist, the company’s recent Shanghai STAR Market listing has pushed its valuation above Intel Corp’s (NASDAQ:INTEL), marking a significant milestone.
Meanwhile, bipartisan U.S. senators have urged Apple Inc. (NASDAQ:AAPL) CEO Tim Cook to avoid using memory chips from Chinese firms CXMT and YMTC, citing concerns over their alleged links to China’s military. The request comes as Apple reportedly tested CXMT’s DRAM chips for China-market devices amid a global memory chip shortage and rising component costs.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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