Apple is developing new strategies as artificial intelligence chips largely consume the memory supply in the market. The company plans to cooperate with the Chinese manufacturer CXMT so that this situation does not negatively affect the production of iPhone 18.

Analyst Ming-Chi Kuo states that this breakthrough will not solve price increases or general supply issues. It is said that Apple’s main goal is to minimize the risk of DRAM shortage.

Contraction in DRAM supply and production forecasts

The increase in DRAM costs has reached a fairly significant level in recent years. For example, the cost of a 12GB LPDDR5X RAM unit increased from $39 to $145, an increase of 272 percent.

Ming-Chi Kuo predicts that due to this supply problem, A20 and A20 Pro chip volumes will decrease by 10 to 20 percent between the second half of 2026 and the first quarter of 2027. The gap between memory supply and demand is expected to continue widening throughout 2027.

Apple is seeking to diversify its supply chain to overcome this bottleneck. It is known that the company is lobbying the White House to remove CXMT from the sanctions list.

Strategic moves and future expectations

These difficulties in Apple’s supply chain directly affect the company’s production processes. The technology giant plans to secure chip supply by accelerating the transition to the 1.4nm process after the 2nm production process.

Analyst Kuo emphasizes that current CEO Tim Cook’s experience is critical in managing the tension between the USA and China. Completing these supply agreements before John Ternus takes office is of great importance for Apple.

Existing major suppliers such as Samsung and SK hynix continue to prioritize their AI-focused customers. This situation is among the main factors that make it necessary for Apple to turn to alternative sources.

What do you think about these steps taken by Apple to solve the DRAM supply shortage?