Author｜Sun Yuning

Editor｜Chen Xiaoran

// Apple Seeks Quotes on Par with Samsung and Hynix

On August 5th, South Korean media outlet 'Digital Daily' unveiled details of supply chain negotiations: Apple is keen on procuring DRAM memory from ChangXin Memory Technologies (CXMT) and is simultaneously striving for lower purchase prices. However, ChangXin has turned down this price reduction request.

ChangXin's stance in negotiations is unequivocal: its quotes to external clients must not be lower than those of Samsung Electronics and SK Hynix, and in certain cases, they should even surpass those of the Korean manufacturers.

Such a scenario would have been nearly inconceivable two years ago. Back then, Apple, as a buyer wielding unparalleled bargaining power in the global consumer electronics sector, was accustomed to dictating terms in negotiations.

Yet, this negotiation dynamic no longer prevails. The primary reason is that ChangXin has established a robust production capacity base. Presently, domestic terminal manufacturers like Huawei and Xiaomi have secured a substantial portion of ChangXin's production capacity through long-term supply agreements.

According to Digitimes, ChangXin's DRAM orders are fully booked until the end of 2027, with leading PC brands such as Dell and HP also vying for supply quotas.

With ample production capacity and a backlog of orders, ChangXin naturally feels no compulsion to yield to Apple's stringent certification processes and price reduction demands.

Objectively speaking, this does not imply that ChangXin is entirely forgoing the opportunity to join Apple's supply chain. Rather, at this juncture, the company does not need to make concessions to secure this particular order.

Where Does This Confidence Stem From?

Established in 2016, ChangXin Memory has been deeply entrenched in the DRAM industry for a decade, showcasing remarkable progress in catching up within the sector.

Omdia statistics indicate that by the fourth quarter of 2025, ChangXin Memory's global DRAM market share will reach 7.67%, ranking fourth worldwide and first in China.

Counterpoint data reveals that in the second quarter of 2026, ChangXin Memory's revenue surged by 716% year-on-year, making it the fastest-growing DRAM manufacturer globally and gradually closing in on the fourth-largest DRAM manufacturer's position worldwide.

Capacity expansion is also gathering pace. SemiAnalysis predicts that ChangXin's monthly DRAM wafer input capacity will hit 350,000 wafers by the end of 2026, narrowing the gap with Micron's estimated capacity of around 375,000 wafers for the same period. ChangXin Memory is expected to catch up with or even surpass Micron in production capacity by the end of 2026, ranking third globally.

In the capital market, ChangXin Technology made its debut on the STAR Market on July 16th, with an issue price of 8.66 yuan and initial fundraising of approximately 57.9 billion yuan, marking the largest IPO in the history of the STAR Market.

It's worth noting that behind these negotiations, Apple may not necessarily be seeking large-scale procurement of ChangXin's chips. More likely, Apple is using ChangXin as a bargaining chip to suppress supply quotes from Samsung and Micron.

However, the bargaining chip itself is no longer willing to accept low-price conditions.

The Industry Landscape Has Shifted

Finally, let's delve into the industry logic underpinning this.

The core conflict in the current DRAM market cycle arises from the AI computing power industry squeezing general-purpose memory production capacity.

Samsung, SK Hynix, and Micron are all redirecting their advanced manufacturing capacity towards HBM. High-value-added AI storage products such as HBM4, LPCAMM2, and enterprise-grade SSDs have become the investment focus for leading manufacturers, continuously squeezing the production capacity for general-purpose DRAM and significantly driving up spot and contract prices.

Industry chain data indicates that the procurement price of 12GB LPDDR5X memory chips has soared, rising from $77.1 in the first quarter of 2026 to $145.9 in the second quarter. The increase is substantial compared to the cycle's low point, and the cost pressure has been passed on to end users, prompting Apple to raise the prices of some Mac and iPad products in 2026.

In the past, during such price hike cycles, global tech giants often had alternative avenues to seek Chinese suppliers to lower procurement costs. However, nowadays, this path's effectiveness has waned, as domestic memory production capacity has been secured by long-term contracts from local terminal enterprises, with quotes on par with those of major Korean manufacturers.

This effectively establishes a price floor for the general-purpose DRAM market. Samsung and Hynix no longer need to engage in low-price dumping to compete for general-purpose DRAM orders and can instead focus their resources on high-margin sectors such as HBM.

By maintaining a reasonable quote range, ChangXin is also accumulating funds for subsequent profit release and continuous capacity expansion.

The market generally anticipates the high-prosperity cycle of the memory industry to extend until 2027. Sectors such as equipment, semiconductor materials, and packaging and testing, which 'sell shovels,' will fully benefit from the wave of domestic memory capacity expansion.

The table remains the same, but the positions of the upstream and downstream players in the industry chain are shifting.