A recent report from Tom's Hardware claims that HP, Asus, and Acer are incorporating Chinese-made memory chips into their notebooks. This is a way to counter the ongoing global shortage of computer memory. The chips in question are produced by CXMT, a Chinese semiconductor company. The move is said to involve only small quantities of memory chips. It's reported that the affected notebooks are not being sold in the U.S. market. This strategy by the PC manufacturers is a direct response to the scarcity of memory components. Caused by surging demand, particularly from the AI and computing industries.
CXMT chips as a strategic supply move
According to a report by Nikkei Asia, the qualification process for CXMT's DRAM chips has been completed by the three manufacturers. They are now using a minimal amount of these chips in a limited range of notebook computers. The report highlights that the usage remains very restricted. Only a few models are incorporating the CXMT chips. Notably, these models are specifically excluded from the U.S. market. Likely due to concerns over CXMT's association with China's military. As identified by the U.S. Department of Defense. Despite this, companies are cautious about disrupting their existing relationships. With leading memory suppliers like Micron, Samsung, and SK hynix.
The report suggests that there is growing interest in having a fourth major player in the memory industry, like CXMT, to help ease the pressure on component shortages. This comes amid a dramatic spike in RAM prices—over 400% in the past year, according to the data. Such price increases have made it more difficult for consumers and PC builders to assemble systems, especially in regions where DIY and gaming are prevalent.
Acer acknowledges, but does not confirm
Acer was the only manufacturer to provide a response to the report. The company affirmed that it works closely with multiple global suppliers to manage component fluctuations and enhance supply chain stability. However, it stopped short of either confirming or denying the use of CXMT chips. This ambiguity leaves room for speculation but also highlights the company's commitment to a diversified supplier approach.
Meanwhile, CXMT has experienced a significant surge in its stock value. Jumping 466% after its initial public offering in Shanghai. The company has stated that the majority of its capital is being directed toward water lines. And process improvements for DRAM rather than high-bandwidth memory (HBM). Which is more profitable and sought after in AI data centers.
The report also mentions that Apple has requested authorization from the U.S. government to purchase CXMT memory chips, an indication of the increasing interest in diversifying the memory supply chain. Additionally, motherboard manufacturers like Gigabyte have expressed support for CXMT as an effort to reduce the burden on the DIY PC market.
The price paradox
Despite the increased availability of CXMT chips as a potential alternative supplier. The report indicates that the company's memory products are not necessarily cheaper. Than those offered by industry leaders such as Samsung. One source noted that CXMT's DRAM is definitely not less expensive than competing brands. This insight suggests that the adoption of CXMT chips by PC manufacturers is driven more by the need. To access additional supply rather than to reduce costs. In a market where notebook and PC components have become prohibitively expensive. The move appears to be a tactical decision to diversify sources. And meet production demands without significant price concessions.