Samsung Plans to Source Chinese DRAM to Lower Smartphone Costs
Miles Bennett
Samsung is evaluating Chinese-made DRAM for select budget phones to lower component costs and claw back share in China — where it currently holds an estimated 0.6% of the smartphone market.
Why is Samsung eyeing Chinese DRAM now?
Semiconductor prices have climbed steadily since early 2026; some phone makers have cut shipment targets by an estimated 15% to 20%.
Samsung is weighing a "reverse localization" strategy: using domestically produced mobile DRAM — the chip inside a phone that handles short-term data storage — in selected models to reduce manufacturing costs.
This means → Samsung's playbook is not raising prices but swapping in cheaper parts to stay price-competitive.
Who gets hit hardest by chip inflation?
Apple and Huawei carry enough brand premium to pass higher costs on to buyers.
Chinese volume players — Xiaomi, OPPO, vivo, Honor — operate on thin margins and have limited room to raise prices; some have reportedly cut production to protect profitability.
In plain terms = chip inflation is a squeeze game — premium brands absorb it, while mid-to-low-end volume players are forced to shrink.
What does Samsung stand to gain?
The target is the Galaxy A series and other entry-level models, where cheaper Chinese DRAM could pull down the bill of materials.
Samsung's China smartphone share sits at roughly 0.6% — nearly negligible; higher entry-level volumes would broaden the revenue base of its Mobile Experience (MX) division.
This means → Samsung is betting on a window — Chinese rivals are pulling back output, leaving room for a low-price push.
Who else is watching Chinese DRAM?
A researcher at the Korea Institute for Industrial Economics and Trade (KIET) noted that rising domestic demand for Chinese DRAM may prompt global players including Apple and Samsung to evaluate Chinese suppliers on cost grounds.
Samsung has not confirmed the reports; a spokesperson said only that the company "cannot comment at this time."
This reflects a broader shift: Chinese DRAM is moving from "fallback option" to "mainstream supply-chain option" — driven not by technological lead but by cost advantage.
Content is for reference only, not financial advice.