[Edaily Reporter JAEMIN SONG ] As Apple moves to adopt Chinese-made memory, SamsungElectronics and SK hynix are on high alert. Although there is currently a significant technological gap between them and Chinese companies in High Bandwidth Memory (HBM) and server DRAM, if Apple’s procurement plans materialize, it could signal the beginning of Chinese memory eroding the global general-purpose market. SamsungElectronics and SK hynix, which have shifted their focus to artificial intelligence (AI) memory, still generate significant revenue from general-purpose DRAM and NAND flash, so this is expected to pose a considerable threat in the medium to long term.

According to industry sources on the 27th, Apple recently requested that the U.S. government approve the use of memory from China’s Changxin Memory Technology (CXMT) and Yangtze Memory Technology (YMTC) in its products sold outside the United States. This move comes as surging demand for memory in artificial intelligence (AI) data centers has led to a shortage of smartphone memory and rising prices, prompting Apple to seek new suppliers.

In response, Micron, the only major U.S. memory manufacturer, is strongly opposing the move. The company argues that if Chinese firms use Apple as a springboard to enter the global supply chain, they could threaten the U.S. memory industry by flooding the market with low-cost products. The U.S. government, too, faces a difficult dilemma between stabilizing electronics prices by expanding memory supply and protecting its domestic semiconductor industry.

What the domestic industry is focusing on is the symbolic significance of supplying Apple. If a Chinese company becomes a supplier to Apple—which is renowned for its rigorous quality verification—it can instantly gain international credibility regarding its technological capabilities and mass-production reliability. If these companies use this as a springboard to expand their customer base to include smartphone and PC manufacturers, price competition is likely to intensify in the general-purpose DRAM and NAND markets currently dominated by SamsungElectronics and SK hynix.

In fact, the market share of Chinese companies is already rising sharply. According to market research firm Counterpoint Research, the revenue-based market share of the global DRAM market in the first quarter of this year was 38% for SamsungElectronics, 29% for SK hynix, and 22% for Micron, in that order. CXMT recorded an 8% share, more than doubling its market share from 3% in the same period last year. NAND manufacturer YMTC also expanded its market share from 8% to 13% during the same period.

The prevailing view is that the short-term impact on earnings will be limited. This is because SamsungElectronics and SK hynix are focusing their production capacity on high-value-added products such as HBM and high-capacity server DRAM, and the technological gap with Chinese manufacturers remains significant. Given the ongoing shortage of general-purpose memory, it is unlikely that the market will immediately shift to an oversupply situation even if some additional Chinese products enter the market.

However, general-purpose memory remains a core revenue source underpinning both companies’ earnings. While HBM is driving growth and profitability, the massive revenue and cash flow generated by DRAM and NAND for smartphones and PCs cannot be ignored. If the adoption of Chinese products spreads, it will not only reduce supply volumes to Apple but could also intensify demands for price cuts from existing customers. In particular, if Chinese companies reinvest the cash they have secured into capacity expansion and next-generation product development, the threat could spread from general-purpose products to server memory.

An industry official stated, “Entering Apple’s supply chain means more than simply securing a single client,” adding, “Depending on the U.S. government’s decision, the pace of Chinese memory manufacturers’ global expansion—as well as the strategies of SamsungElectronics and SK hynix to defend the general-purpose market—could change.”