Micron Drops 5.5% After Apple Wins Approval to Buy Chinese Memory Chips
Updated
Updated · The Motley Fool · Aug 24
Micron Drops 5.5% After Apple Wins Approval to Buy Chinese Memory Chips
3 articles · Updated · The Motley Fool · Aug 24
Summary
Micron sank 5.5% within the first five minutes of Monday trading after a report said the Trump administration will let Apple source memory chips from CXMT and YMTC.
Apple would use the Chinese DRAM and NAND only in devices sold in China, limiting the immediate hit but threatening Micron's share in a key market.
Lynx Equity Research called the selloff an overreaction, arguing Chinese suppliers still face quality hurdles and lack the scale to fully meet Apple's demand.
CXMT's recent $8.6 billion Shanghai IPO could quickly change that capacity picture, underscoring investor fears that cheaper Chinese memory will become a stronger competitive threat.