Headline: Google (GOOGL) Reportedly Eyes China's CXMT for Next-Gen TPU Memory Chips Amid Cost Concerns

Google (GOOGL) is reportedly considering procuring memory chips from Chinese manufacturer ChangXin Memory Technologies (CXMT) for its next-generation Humufish Tensor Processing Units (TPUs). The move aims to diversify Google's supply chain and mitigate rising memory chip costs, which Apple CEO Tim Cook recently highlighted as unsustainable. This potential partnership signals Google's efforts to reduce reliance on dominant suppliers like Samsung, SK Hynix, and Micron Technology (MU). Google plans to produce 3.5 million custom AI chips by December 31, 2028, necessitating a substantial memory chip supply. CXMT, which is expanding its monthly wafer capacity from 200,000 to an estimated 300,000 by December 31, 2026, and is preparing for an IPO, could offer a strategic alternative. However, the potential deal faces scrutiny due to complex geopolitical factors and possible attention from U.S. regulators.