As one of the world's largest PC manufacturers, HP may turn to Chinese memory manufacturers to secure its DRAM supply due to increasingly limited options.
May Include CXMT Memory in Some Products for Asian and European Markets
As the memory supply crunch intensifies daily due to high demand from AI data centers, even large-scale OEMs like HP are struggling to secure supply. According to a Bank of America (BofA) report, HP plans to integrate Chinese memory suppliers into its supply chain for a limited number of products destined for Asian and European markets. It is emphasized that the restricted supply from major manufacturers like Micron and Samsung could make Chinese DRAM and NAND producers like CXMT more attractive in the coming period.
CXMT's DRAM wafer production is expected to reach approximately 300,000 units per month by 2026. While this figure is lower compared to industry giants, the company's lack of aggressive expansion into HBM products so far ensures it has sufficient capacity for DDR5 memory.
One of the biggest obstacles for manufacturers like HP to procure memory from CXMT is U.S. regulations. Under the National Defense Authorization Act, the U.S. Department of Defense is prohibited from using CXMT-sourced semiconductors. This indicates that the U.S. administration is not keen on Chinese-origin components in sensitive products. While there is currently no direct ban on the use of CXMT memory in commercial products, the U.S. could impose new restrictions if HP decides to pursue this option.
According to the BofA report, HP's use of CXMT memory will most likely be limited to specific products shipped to Asia and Europe. This way, the company aims to leverage legal loopholes to ensure that the use of Chinese-origin memory does not violate local regulations.
Overall, Chinese memory and flash manufacturers are becoming an increasingly strong alternative in the current supply crisis. The fact that firms like CXMT have not yet allocated a large portion of their DRAM production to HBM could help alleviate the consumer market to some extent while AI-driven demand continues.
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