Samsung Electronics Considers Using Chinese DRAM in Smartphones to Cut Costs, Boost Shipments

Samsung Electronics is considering adopting more cost-competitive Chinese-made DRAM chips in its entry-level and mid-range smartphones for the Chinese market, in a bid to strengthen its position there. The global semiconductor industry has been experiencing heightened volatility due to rising chip and component prices, which has led to a notable contraction in China's smartphone market. Samsung's move is intended to reduce manufacturing costs while increasing shipments of budget and mid-range models targeted at Chinese consumers.

Strong demand from artificial intelligence data centers has pushed up semiconductor prices, causing Chinese smartphone makers to scale back shipments due to higher component costs -- a gap that Samsung sees as an opportunity. By adopting a contrarian strategy, Samsung plans to integrate low-cost Chinese mobile DRAM and other locally sourced semiconductor components into its smartphones to capitalize on this market opening.