Supply Chain
Ongoing coverage on Supply Chain.
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Apple (AAPL) begins testing Chinese RAM maker CXMT chips for products sold in China
Apple has begun testing DRAM chips from Chinese manufacturer ChangXin Memory Technologies (CXMT) for devices sold in China. The company is also lobbying the US government to allow broader use of CXMT products, amidst ongoing economic tensions and a global race for AI advancements. CXMT is a significant player in the DRAM market, and its expansion could impact global pricing.
Apple reportedly testing RAM chips from US-blocked Chinese company
Apple is reportedly testing devices that use DRAM chips manufactured by CXMT, a Chinese company with alleged ties to the People's Liberation Army. This testing involves components from a company that is currently subject to US restrictions.
Morning Tech Bits
Intel is expected to resume the supply of its 10th, 12th, 13th, and 14th generation processors in mainland China. Separately, data centers are reportedly being targeted by cargo thieves, with over $1 million worth of copper stolen.
Evening Tech Bits
Apple is reportedly using its political influence in Washington to secure memory chip purchases from Chinese companies CXMT and YMTC. However, the article suggests that these deals are unlikely to result in any cost savings for US consumers.
Memory manufacturers sued in class action suit alleging price and supply fixing
Memory manufacturers Samsung, SK Hynix, and Micron are facing a class-action lawsuit alleging they fixed component prices and reduced supply. The suit claims the companies coordinated their exit from DDR3 and DDR4 RAM production to focus on high-bandwidth memory for AI data centers, leading to significant price increases. This alleged manipulation has impacted console manufacturers like Sony and Nintendo, who have cited memory shortages as a factor in recent hardware price hikes.
Valve says the memory and storage crisis is so bad, it's not just a problem of pricing, they had to 'negotiate really hard' just to secure supply for the Steam Machine
Valve has revealed that securing memory and storage for the Steam Machine was not just a pricing issue, but a significant supply challenge. The company had to negotiate extensively to obtain the necessary components, facing a crisis that has been impacting them for up to a year, ahead of broader retail awareness. This difficulty contributed to the Steam Machine's high launch price of $1,049.
Amidst a lawsuit for RAM price fixing, Micron has signed manufacturing agreements with 16 of its clients that will ensure high memory costs for another five years
Micron has signed five-year manufacturing agreements with 16 clients, locking in high memory costs for another five years. This comes amidst a lawsuit accusing Micron, Samsung, and SK Hynix of price fixing by artificially limiting supply. CEO Sanjay Mehrotra stated these agreements ensure contracted supply assurance and robust gross margins for Micron.
Three Biggest RAM Makers Sued for Price-Fixing DRAM, Causing Supply Shortage
SK Hynix, Samsung, and Micron are facing a class-action lawsuit alleging price-fixing and supply manipulation of DRAM components. The lawsuit claims the companies artificially limited DDR3 and DDR4 RAM supply to drive up prices, while prioritizing more profitable High Bandwidth Memory for AI data centers. This alleged behavior has impacted the prices of consumer electronics, including gaming consoles like the PlayStation 5, Xbox Series X, and Nintendo Switch.
The largest RAM and storage component manufacturers are being sued for alleged price fixing and stoking "supracompetitive prices"
Samsung, SK Hynix, and Micron, the world's largest RAM and storage manufacturers, are facing a class-action lawsuit alleging price-fixing and intentional supply limitations. The suit claims these actions have led to 'supracompetitive prices' for consumers, impacting devices from PCs and consoles to AI data centers. This is not the first time these companies have faced such accusations, with past incidents involving DRAM price-fixing leading to significant fines.
US lawsuit accuses Samsung, SK Hynix and Micron of worsening the RAM crisis by fixing memory prices and supply
Samsung, SK Hynix, and Micron are facing a US class-action lawsuit accusing them of fixing RAM prices and supply, thereby worsening the global memory crisis. The lawsuit alleges the companies colluded to shift production from consumer RAM to High Bandwidth Memory for AI data centers, reducing overall supply and driving up prices since 2022. Micron has stated they disagree with the allegations and will defend themselves.
SK Hynix, Samsung and Micron sued over allegations of "concerted anticompetitive behaviour" in DRAM market
Chip manufacturers SK Hynix, Samsung, and Micron are facing a class action lawsuit alleging concerted anticompetitive behavior in the DRAM market. Lawyers claim the companies coordinated to cut consumer DRAM supply and pivot to high-bandwidth memory for data centers, leading to significant price increases. This alleged behavior follows a history of DRAM price-fixing conspiracies between the same companies.
Valve can afford a niche, pricey hardware launch; Sony and Microsoft can’t
The article analyzes the impact of rising hardware component prices on the video game industry, particularly for console manufacturers like Sony and Microsoft. While Valve's Steam Machine can find a niche despite its high price, Sony and Microsoft face greater risks if their next-generation consoles are priced out of the mass market due to these ongoing supply chain and pricing issues.
New report suggests retailers may run out of PS5 and Xbox stock 'around the launch of GTA 6' — 'Demand will likely outstrip supply during the year end period'
Retailers may face shortages of PlayStation 5 and Xbox Series X/S consoles around the launch of Grand Theft Auto 6 due to ongoing hardware component availability issues. Demand is expected to outstrip supply during the year-end period, despite assurances from Sony about PS5 stock for 2026. Xbox has acknowledged existing supply limitations.
Grand Theft Auto 6 demand may be so high it will "likely outstrip supply" this holiday season, a video game retailer warns
A video game retailer warns that demand for Grand Theft Auto 6, launching November 19, will likely outstrip supply for consoles like the PlayStation 5 and Xbox Series X/S this holiday season. Ongoing hardware component shortages, exacerbated by the generative AI boom, are limiting the availability of units needed to meet the anticipated surge in interest.
Xbox May Have Another Price Hike Up Its Sleeve In 2027
Microsoft is reportedly planning another price increase for Xbox consoles, potentially in late 2027 or 2028, citing rising storage and memory costs. This follows recent price hikes implemented in May and October 2025, and a prior increase in October 2024. The company attributes these adjustments to significant increases in component prices, which have more than doubled.
Microsoft raises price of Xbox consoles once again, sunsets 2TB model
Microsoft is increasing the prices of its Xbox Series S and Xbox Series X consoles globally starting August 1, 2026, citing a global memory hardware shortage driven by generative AI companies. The 512GB Xbox Series S will rise by $100 to $499.99, and 1TB models of both consoles will increase by $150, with the 2TB Xbox Series X being discontinued. This follows similar price hikes from Sony and Nintendo, with Microsoft explaining that consoles are typically sold at a loss, making them particularly vulnerable to component cost increases.
PC RAM prices could stay this high for years, hints memory maker Micron's latest earnings
Micron Technology's latest earnings report indicates that PC RAM prices may remain high for several years due to long-term supply agreements and a focus on data center production. CEO Sanjay Mehrotra highlighted that industry supply is structurally constrained and unlikely to meet increasing demand until around 2028. This situation, coupled with potential shifts in AI infrastructure, suggests inflated prices for RAM-intensive tech products will persist.
Valve wasn't sure it was gonna have any Steam Machines to sell at the start of 2026: 'Things looked really…
Valve engineers Yazan Aldehayyat and Pierre-Loup Griffais discussed the challenges in producing Steam Machines, particularly due to the RAM crisis impacting component costs and availability. At the beginning of the year, Valve was uncertain if they would have any units to sell, but they have since managed to secure a sizable amount for launch, though day-one demand is expected to exceed supply.
Well, that explains the expensive Steam Machine: Valve can't negotiate with RAM companies for better prices because "if we say no, then they never talk to us again"
Valve engineer Pierre-Loup Griffais explained that the high price of the Steam Machine is due to RAM manufacturers refusing to negotiate, leaving Valve with limited options. This issue is exacerbated by generative AI companies consuming large amounts of RAM, driving up prices for all consumers and leading console manufacturers like Microsoft, Sony, and Nintendo to increase their own hardware prices.
Valve Admits That it Didn’t Have Bargaining Power With RAM Companies for Steam Machine
Valve engineer Pierre-Loup Griffais revealed that the high cost of the Steam Machine was partly due to a lack of bargaining power with memory manufacturers. These companies dictated prices with no room for negotiation, a situation exacerbated by the demand from AI data centers. Griffais also explained Valve's commitment to an open PC ecosystem, which prevented them from subsidizing the hardware cost like a console.
