Micron and Sandisk shares fall after Washington allows Apple to source DRAM and NAND from Chinese rivals CXMT and YMTC.
The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) dropped 8% by midday after the US approved Apple’s use of memory chips from Chinese suppliers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Corp (YMTC). The move threatens Micron and Sandisk, which dominate DRAM and NAND markets.
Micron, SOXL’s largest holding at 8.6%, fell 5%, while Sandisk declined 6%. CXMT and YMTC, both backed by fresh capital, are expanding production of high-bandwidth memory and NAND flash, key components for AI applications.
The decision marks a shift in US-China tech competition, potentially reducing reliance on American memory chipmakers. SOXL’s 3x leverage amplified losses after a 32% gain earlier in August.