ChangXin Memory Technologies (CXMT), China’s largest DRAM maker and the world’s fourth-largest producer, sued the U.S. Department of Defense on Aug. 28, 2026, in the U.S. District Court for the District of Columbia seeking removal from the Pentagon’s Section 1260H list of Chinese military companies. CXMT says it is not affiliated with the Chinese military, designs and sells DRAM only for civilian and commercial customers, and that the January 2025 listing, a same-day-withdrawn February 2026 removal notice, and June 2026 relisting were arbitrary, unsupported and procedurally flawed. Section 1260H status does not itself bar private U.S. purchases of CXMT chips, but a related FY2023 National Defense Authorization Act provision prohibits federal agencies from using goods that incorporate CXMT semiconductors beginning in December 2027. The dispute coincides with an AI-driven DRAM shortage that lifted CXMT’s first-half 2026 revenue to 150.31 billion yuan, up 873.6%, and net profit to about 77.6 billion yuan after a prior-year loss, its first results since a July Shanghai listing. Counterpoint Research called CXMT the fastest-growing major supplier, while Samsung, SK hynix and Micron still hold about 90% of global DRAM revenue. CXMT has begun mass-producing LPDDR6 for Xiaomi’s 18 Fold, is sampling the chips to server and automotive customers, and has gained share in older LPDDR4X as Samsung cut output, sharpening mobile DRAM competition. Morgan Stanley projects CXMT monthly capacity at 300,000 wafers by year-end and 500,000 by 2028, with 2026 revenue near 388.9 billion yuan; UBS sees Chinese DRAM makers’ shipment share rising toward 9.4% by 2027 and the DRAM supercycle lasting into the second quarter of 2028. Apple has been reported to weigh CXMT purchases amid political scrutiny, while CXMT remains off the Commerce Entity List.