HP, Asus and Acer Turn to Chinese Memory Supplier as AI Boom Tightens DRAM Market

The AI infrastructure buildout is reshaping another corner of the semiconductor industry, with reports indicating that HP, Asus and Acer have begun using limited quantities of DRAM from China’s ChangXin Memory Technologies (CXMT) in selected notebook computers.

The move is yet another sign of the growing strain that AI investment is placing on the global memory supply chain. As hyperscalers continue purchasing high-performance memory for AI training and inference systems, PC makers are searching for additional sources of conventional DRAM needed for laptops and other consumer devices. According to multiple reports, the three PC makers have qualified CXMT memory and are using it in a limited number of notebook models sold outside the US.

The deployments are small. Industry sources indicate that the companies continue to rely primarily on the dominant memory manufacturers Micron, Samsung Electronics and SK hynix, which together control more than 90% of the global DRAM market. Rather than replacing those suppliers, CXMT appears to be serving as an extra source of supply in what is now a very tight market.

Alleged Connection to China’s Military

CXMT appears on the US Department of Defense’s 1260H list because of alleged ties to China’s military, creating potential political and regulatory sensitivities for Western technology companies. Although the company is not currently subject to a US trade blacklist and denies the allegations, manufacturers have limited deployments to non-US products.

The driver here is the explosive growth in AI infrastructure. Memory manufacturers have directed production toward high-value products supporting AI servers and data centers, including HBM, while demand for conventional DRAM has remained strong across PCs and smartphones. The result has been tighter supplies and steep price increases across the DRAM market, with some reports citing RAM prices rising by more than 400% over the past year.

Some PC vendors have already secured sufficient processor inventories and are now treating memory as the primary supply constraint for notebook production. That has made qualifying additional DRAM suppliers a practical supply chain strategy, even if those suppliers account for only a small percentage of shipments.

The decision does not appear to be driven primarily by lower pricing. CXMT’s DRAM is reported priced competitively with products from Samsung and other established suppliers, suggesting manufacturers are seeking supply availability rather than discounts.

For CXMT, even limited adoption by major PC brands is an important milestone. The Chinese memory manufacturer has steadily expanded its manufacturing capabilities and recently completed a Shanghai STAR Market listing that greatly boosted its valuation. The company keeps investing in DRAM manufacturing capacity, although much of its output remains focused on domestic customers, including Huawei.

Questions remain about how much Western PC makers will expand use of Chinese memory. It is not clear which notebook families include CXMT chips, the volume being shipped, or which DRAM generations are involved. Acer, while declining to identify suppliers, said it works with multiple global manufacturers to strengthen supply chain resilience and adjust to changing component costs. HP and Asus have not publicly detailed their sourcing strategies.