That memory chips are scarce at the moment is hardly news that raises eyebrows these days. Even so, there appears to be a bit of desperation in the air that was not an elemental presence as recently as just a few weeks back. As a case in point, consider the latest tidbit: Google might procure memory chips from China's CXMT, upending the monopolistic dynamics in the memory sphere, and potentially opening a floodgate of similar deals.
Google might tap China's upstart memory player, CXMT, as a hedge against the so-called Big 3: Samsung, SK hynix, and Micron
According to the X account SouthernValue, Google is currently mulling the procurement of precious DRAM chips from China's CXMT. In a move that adds veracity to this rumor, the tipster Jukan has also reposted SouthernValue's wild take.
Also, when asked about their source, SouthernValue replied with a terse "Sundar Pichai," the CEO of Google's parent, Alphabet.
Of course, we do not know Google's target vector for Chinese DRAM yet: its Pixel smartphones, AI-enabling TPUs, or the Google Cloud.
Given the relatively small volumes that the Pixel lineup typically entails, together with the heightened scrutiny involved in leveraging Chinese memory chips within the cloud infrastructure, it is quite reasonable to assume that the potential deal might relate to TPUs - the next-gen Humufish TPUs, to be more specific - especially as the tech giant is reportedly targeting a volume of 3.5 million units for these custom AI chips by the end of 2028.
Meanwhile, Google's potential move comes at a time when CXMT is not only preparing for an IPO but also aggressively expanding its capacity, to the tune of 300,000 wafers per month by the end of this year from its current capacity of just around 200,000 wafers per month.
Interestingly, Reuters reported recently that the U.S. was preparing to blacklist China's DeepSeek, CXMT, and around 100 other entities last year but had held off to "avoid escalating tensions with Beijing."
Meanwhile, as to the rationale behind Google's possible move, look no further than Apple, whose CEO Tim Cook declared just today that memory prices, which are a function of scarcity, have now become "unsustainable," and that price hikes have become "unavoidable" for Apple.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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