Apple's attempt to use Chinese memory maker CXMT as leverage against Samsung Electronics and SK Hynix has backfired, giving the Korean chipmakers more pricing power.

This year, Apple explored CXMT and fellow Chinese maker YMTC as potential DRAM suppliers, testing CXMT's chips as shortages pushed costs up across its product line. The goal was to pressure the Korean suppliers into cutting prices, a tactic used before with OLED suppliers.

However, CXMT is barred from EUV lithography tools under U.S. export controls and relies on older DUV equipment, requiring about 30% more wafer starts for the same output. That extra cost sets CXMT's floor at the Korean rates, so when Apple pushed for a lower LPDDR5X quote, CXMT refused to reduce pricing.

With the threat neutralized, Chinese device makers Huawei and Xiaomi have already locked most of CXMT's output, leaving Apple with little leverage. The result is that Samsung and SK Hynix face less pressure to lower prices, shift toward high‑bandwidth memory for AI, and tighten the broader DRAM supply.