CXMT and YMTC Leverage Apple Validation for Quality, Resell to North American Cloud Providers

Apple is actively integrating CXMT (ChangXin Memory Technologies) and YMTC (Yangtze Memory Technologies) into its supply chain. Industry sources indicate that the two companies have leveraged Apple's validation to demonstrate that China's DRAM and NAND have reached international quality standards. Behind the scenes, they are reselling products to new North American cloud (neocloud) and enterprise-level clients through third-party assembly channels, expanding their market share in the cloud and enterprise sectors.

CXMT's parent company has completed a RMB 29.5 billion fundraising round, while YMTC plans an IPO to raise approximately RMB 33 billion for production line upgrades and R&D. YMTC turned profitable in 2024, with net profit attributable to the parent company reaching RMB 33.379 billion in Q1 2026. Its third-phase new fab will commence production ahead of schedule in Q4 2026, with a monthly capacity of 100,000 wafers, approximately 20% of which will be trial production of LPDDR. Supply chain sources expect China's domestic memory self-sufficiency rate to rise above 50% by end-2027 to 2028.

YMTC sells NAND to third-party module makers, which assemble it into enterprise-grade SSDs to circumvent origin sensitivity, while CXMT has been introduced to small and mid-sized cloud providers in the US, Canada, and other regions for certification. The US Entity List primarily restricts access to US technology but does not fully prohibit private-sector procurement. Cloud providers also mitigate compliance risks by leasing computing power or holding assets through third parties. Industry sources believe the two companies have no intention of flooding the market or competing on price cuts, and near-term capacity expansion will still struggle to meet Apple's demand in the Chinese market.

[ChainCatcher]