70%
Probable
Memory chips were previously a low-margin business, with customers like Apple and other companies dictating prices that often allowed them to acquire shipments at pennies on the dollar. However, times have changed since late 2025, as AI datacenters have gobbled up the majority of the DRAM supply, leaving manufacturers like CXMT and YTMC to flex some might of their own, introducing hikes on the likes of Huawei of all companies.
Apparently, a situation materialized between CXMT and Huawei where engineers linked to the former Chinese giant were forced to pack up their tools and exit the premises of the memory maker’s R&D facility. Apparently, the two companies have had their fair share of bad blood ever since CXMT began raising DRAM prices on Huawei, showcasing its newfound position against technology titans.
Huawei’s equipment vendor SiCarrier believes the confrontation happened because CXMT is forcing its Chinese clientele to pay more than they can fathom
Given that the U.S. export controls have backed Chinese firms into a corner, one would assume that there would be unity amongst companies like CXMT and Huawei, as both of them can work together to outgrow a multitude of trade bans. According to Reuters, it’s quite the opposite as CXMT has been forcing the smartphone maker to submit to higher DRAM prices, despite Huawei requesting relief.
Things became tense between the two when an incident transpired in the month of June. A group of engineers from a chipmaking-equipment vendor with deep strategic ties to Huawei had been working in the cleanrooms at CXMT’s core research and development zone. Without prior warning, CXMT ordered the engineers to pack up their tools and leave the factory floor immediately.
SiCarrier, one of Huawei’s partners that has been deeply rooted in the company’s operations, such as being involved with the development of in-house EUV machines, believes that this confrontation was the result of a power struggle between CXMT and Huawei. While both companies are still engaged in business, the engineers haven’t been allowed back in the aforementioned R&D facility.
CXMT’s and YMTC’s fortunes have taken an unexpected turn ever since the DRAM crisis worsened. Previously relying on government subsidies to rescue them from certain collapse, China’s memory makers have now acquired a lust for power and are taking unfair advantage of this position. Sources familiar with current plans claim that these DRAM manufacturers are now charging more than their South Korean rivals due to insatiable demand.
One can also assume that with Apple becoming interested in forming a partnership with CXMT, the success has gone to the memory maker’s head, believing itself to be an indispensable supplier during the AI boom. Apple wishes to reduce its DRAM supply risk by adding CXMT into the fold, and to maintain competitiveness, the memory shortage has developed a new desire to outdo its rivals, Samsung and SK hynix, by taking advantage of the DDR6 space before it enters commercialization.
By as early as this year. CXMT began picking and choosing clients, with priority being given to customers that can fork up the highest sum for DRAM shipments.
News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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