Apple is testing memory chips from China’s state-backed ChangXin Memory Technologies (CXMT) for devices sold in China, signaling growing Chinese capabilities in memory semiconductors amid U.S. restrictions.

Other Chinese listed memory-related companies also rallied, including Skyverse Technology, Kingsemi, and Wuhan Jingce Electronic Technology, as investor sentiment strengthened.

CXMT is preparing for a domestic IPO that could value the company at up to 3 trillion yuan, with funds earmarked to expand manufacturing, advance next-generation DRAM tech, and push high-bandwidth memory for AI accelerators.

Rivals worry that sustained state-backed investment could rapidly expand China’s memory capacity and put downward pressure on global memory prices.

CXMT has grown from a subsidized domestic maker to the world’s fourth-largest DRAM producer, accounting for about 11% of global wafer capacity last year and projected to rise to 15% by 2028 with new lines in Hefei, Shanghai and Beijing.

The development suggests potential strengthening of China’s domestic semiconductor supply chain despite ongoing U.S. restrictions.

Chinese memory-chip stocks rallied after the report, with Hua Hong Semiconductor up over 14% intraday and Canxin (Brite Semiconductor Shanghai) up around 20%.

Apple is lobbying to allow broader use of CXMT products among U.S. tech firms, though there is no commitment to commercial adoption at this time.

Apple is leading efforts among U.S. technology companies to persuade Washington to permit broader use of CXMT chips, but no guaranteed commercial uptake yet.