Western Digital sinks 10%, as Apple eyes Chinese chip supplier CXMT

Western Digital (WDC) shares fell more than 10% following reports that Apple is negotiating with Chinese manufacturer ChangXin Memory Technologies (CXMT). This potential partnership introduces a major competitor to the memory market, threatening the pricing power of established suppliers.

Apple aims to diversify its supply chain to mitigate soaring memory costs driven by high AI sector demand. A deal with a lower-cost Chinese supplier could disrupt market dynamics for major producers serving the world's largest consumer electronics company.

The news triggered a broad semiconductor sell-off despite Western Digital focusing on NAND flash while CXMT specializes in DRAM. Investors anticipate increased competition and price pressure across the global data storage landscape.