U.S. Commerce Secretary Howard Lutnick said the Trump administration has told Apple that using Chinese memory chips is not advisable, a stance he confirmed applies to Changxin Memory Technologies (CXMT), which already holds a 7% global DRAM revenue share. On the same day, Micron rose more than 5.9%, SK Hynix rose 5.6%, and SanDisk closed up 8.9%.
What specific action has the Trump administration taken against CXMT?
Commerce Secretary Howard Lutnick has communicated to Apple that using Chinese memory chips is not advisable, and current U.S. rules already require American companies to obtain a license before sharing any product information with CXMTCITE:E6. In an interview with The Wall Street Journal, Lutnick said directly that U.S. companies using Chinese memory is not a good thing, and that the administration has conveyed this policy position to AppleCITE:E4. Beyond the Apple-specific message, the license requirement applies broadly to any U.S. firm sharing product information with CXMTCITE:E6.
How fast has CXMT expanded in the global DRAM market?
CXMT held a 7% share of global DRAM revenue in the second quarter of 2026, according to Counterpoint ResearchCITE:E5. The firm's data show CXMT has expanded rapidly in conventional DRAM in recent years, reaching that 7% revenue share by Q2 2026CITE:E5.
How did memory stocks react on the day the policy news broke?
Micron, SK Hynix, and SanDisk all rose on the day the policy stance was reported, with SanDisk posting the largest closing gainCITE:E1CITE:E2CITE:E3.
| Company | Move | Timing |
|---|
| Micron Technology | +5.9% or more | IntradayCITE:E1 |
| SK Hynix | +5.6% | IntradayCITE:E2 |
| SanDisk | +8.9% | CloseCITE:E3 |
What investment opportunity does Micron face amid tight supply?
Bank of America reiterated a Buy rating on Micron with a $1,550 price target, implying about 59% upside from the level at the time of the reportCITE:E7. Micron shares have risen more than 730% over the trailing 12 months, though the stock remains below the more than $1,200 high it reached in the summer of 2026CITE:E8. Bank of America forecasts Micron's fiscal 2030 EPS at $200 to $250, well above the current market consensus of $160 to $170CITE:E9. Micron's Sumit Sadana said he expects the "extremely tight" industry supply-demand situation to persist beyond 2027, with high-bandwidth memory (HBM) demand rising sharply as AI workloads expand, and an increasing number of customers now viewing DRAM as their primary bottleneckCITE:E11.
How are memory makers adjusting strategy for supply chain shifts?
SanDisk CEO David Goeckeler said the company is shifting toward multi-year contracts with customers, extending demand visibility from roughly three months to more than four yearsCITE:E10. Goeckeler said 50% to two-thirds of SanDisk's supply is now covered by these long-term contractsCITE:E10.
How is Apple balancing geopolitical risk against cost pressure?
Apple is reportedly planning to adjust its supply chain by using NAND flash chips made by Yangtze Memory Technologies (YMTC) in iPhones sold in the China marketCITE:E12. Apple's current per-unit cost for an LPDDR5X memory chip has reached $70, and the company has little negotiating leverage in talks over that priceCITE:E13. YMTC, using its proprietary Xtacking 4.0 technology, has mass-produced 3D NAND flash memory with more than 300 layers, with performance said to match top international flagship products and to meet Apple's strict quality-control requirementsCITE:E14. Market analysis cited in the report holds that limiting YMTC chips to China-market models is Apple's optimal choice for balancing cost and geopolitical risk — lowering costs and protecting margins through local supply while avoiding domestic U.S. public and policy backlashCITE:E15.
What this means
The timeline laid out in the evidence links a policy signal to an immediate market reaction: Lutnick's confirmation that Washington has told Apple to avoid Chinese memory chipsCITE:E4 and the license requirement covering CXMTCITE:E6 came as CXMT's global DRAM revenue share had already reached 7%CITE:E5, and Micron, SK Hynix, and SanDisk shares all moved higher the same dayCITE:E1CITE:E2CITE:E3. Separately, Apple's reported move to source YMTC NAND flash for China-market iPhonesCITE:E12 — driven in part by a $70 per-chip LPDDR5X cost with little negotiating roomCITE:E13 and YMTC's 300-layer NAND capabilityCITE:E14 — sits alongside, rather than in direct conflict with, the U.S. pressure on CXMT, since the reported YMTC sourcing is confined to China-market models specifically to avoid U.S. domestic policy exposureCITE:E15.
Author's Take・EffectStory 編輯部
The numbers in this story point to two separate supply squeezes converging on Apple at once. On the DRAM side, Bank of America's $200-250 FY2030 EPS forecast for Micron sits well above the $160-170 consensus, and that gap only makes sense if the 'extremely tight' supply-demand picture Micron's Sadana described actually holds into 2027 and beyond. SanDisk's shift to multi-year contracts — pushing 50% to two-thirds of its supply into agreements with four-plus years of visibility — is itself a signal that suppliers expect this tightness to be structural, not a short squeeze. On the NAND side, Apple's reported $70 per-chip LPDDR5X cost with little negotiating leverage explains why a China-only YMTC option, built on genuinely competitive 300-layer NAND, is commercially attractive even before politics enter the picture. The metric worth watching next is whether Micron's actual fiscal 2030 results track toward BofA's $200-250 EPS range or settle closer to the $160-170 consensus — that gap is the market's real bet on how long the current DRAM tightness lasts.