Micron Falls 3% as Apple Tests CXMT Memory Chips
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- Micron Technology (NASDAQ:MU) shares fell 3% on Monday amid investor concerns over rising Chinese competition in the memory market
- ChangXin Memory Technologies (CXMT) is considering a second Beijing facility that more than doubles its monthly wafer output above 600,000 units
- Apple has been testing memory products from CXMT and has pushed to keep the Chinese company off U.S. trade restriction lists
- Micron faces pricing pressure on commodity DRAM as expanding Chinese production reaches the global market
- The article notes the expansion could add pressure to global memory suppliers if additional Chinese capacity comes online
Why it matters: Micron's 3% drop reflects a dual squeeze: CXMT's planned Beijing expansion — pushing wafer capacity above 600,000 units — would pressure DRAM pricing across the market, while Apple's simultaneous testing of CXMT memory and lobbying to keep CXMT off U.S. trade blacklists reveals Apple's intent to diversify away from Micron as its sole memory supplier.
