Chinese chipmaker ChangXin Memory Technologies (CXMT) has filed a federal lawsuit against the U.S. Department of Defense to overturn its designation as a "Chinese military company" under Section 1260H. CXMT, the world's fourth-largest DRAM manufacturer, argues the listing is arbitrary, procedurally flawed, and causes severe reputational and commercial harm. The legal challenge follows similar lawsuits by Chinese tech peers like Alibaba and Xiaomi amid surging global demand for AI memory chips.
CXMT Pentagon lawsuit
- ▪The U.S. Department of Defense stated on August 28, 2026, that as a matter of policy it does not comment on pending or ongoing litigation.
- ▪ChangXin Memory Technologies spent more than a year providing information to the U.S. Department of Defense to challenge its military designation before filing the lawsuit.
- ▪The ChangXin Memory Technologies lawsuit, filed in the U.S. District Court for the District of Columbia, names Defense Secretary Pete Hegseth, Deputy Secretary Steve Feinberg, and Chief of Industrial Base Policy Michael Cadenazzi as defendants.
- ▪ChangXin Memory Technologies filed a lawsuit against the U.S. Department of Defense on August 28, 2026, seeking to overturn its designation as a Chinese military company.
Section 1260H military designation
- ▪ChangXin Memory Technologies argues its DRAM products conform to JEDEC commercial standards and that a 'military grade' advertisement cited by the Pentagon was published by an unauthorized distributor.
- ▪ChangXin Memory Technologies was first added to the Section 1260H list in January 2025 under the Biden administration and remained listed following a June 2026 update.
- ▪The Pentagon's Section 1260H list identifies companies operating in support of China's military, restricting U.S. federal agencies and defense contractors from doing business with them.
- ▪The Pentagon briefly published a notice in February 2026 indicating ChangXin Memory Technologies would be removed from the list, but withdrew the notice the same day.
DRAM market supply dynamics
- ▪ChangXin Memory Technologies reported revenue of 150.31 billion yuan, approximately $22.4 billion, for the first six months of 2026, representing an 874% year-over-year increase.
- ▪ChangXin Memory Technologies completed an IPO in July 2026, with shares surging 466% on listing to reach a valuation of approximately 3.28 trillion yuan.
- ▪ChangXin Memory Technologies is the world's fourth-largest DRAM manufacturer, competing alongside Samsung, SK hynix, and Micron, which control 90% of global DRAM revenue.
Chinese tech firms legal challenges
- ▪Chinese smartphone maker Xiaomi successfully overturned its Pentagon military-list designation through a U.S. lawsuit in 2021.
- ▪Alibaba Group Holding filed a lawsuit in June 2026 challenging its inclusion on the Pentagon's military-affiliated list, securing a temporary reprieve over a lobbying restriction.
- ▪Yangtze Memory Technologies filed a lawsuit against the Pentagon in December 2025 under the Administrative Procedure Act to challenge its military designation.
US-China semiconductor restrictions
- ▪A provision in the FY 2023 National Defense Authorization Act prohibits U.S. federal agencies from using goods containing semiconductors from ChangXin Memory Technologies starting in December 2027.
- ▪A bipartisan group of U.S. senators has urged Apple to reject memory chips from ChangXin Memory Technologies and Yangtze Memory Technologies.
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