Samsung Weighs Using Chinese DRAM Chips for China's Budget Smartphone Market

Samsung Electronics is reportedly considering the adoption of cost-competitive Chinese-made DRAM chips to bolster its position in China's entry- and mid-level smartphone market. The information comes from South Korean media outlet Asia Times, which notes a significant contraction in China's smartphone market amid global semiconductor industry turbulence and rising chip prices.

The technology giant is exploring a reverse strategy, integrating lower-cost Chinese mobile DRAM and other locally sourced semiconductor components into its smartphones. This initiative is intended to reduce manufacturing expenses while simultaneously increasing shipments of budget and mid-range devices within China.

This strategy seeks to capitalize on a market gap created as local smartphone manufacturers scale back their own shipments. Higher component costs, driven by booming demand from AI data centers, have escalated semiconductor prices across the board.

As consumers shift towards more affordable devices or delay upgrades due to increased prices, Samsung's move could allow it to capture price-sensitive buyers by offering competitively priced models.