The smartphone industry has been dealing with supply chain issues for years, but memory shortages are now harder to ignore than ever. A mix of rising demand for AI hardware and limited production capacity has pushed DRAM prices up, putting pressure on companies that rely on it to build phones.
According to reports from Wccftech and South Korean publication JoongAng Ilbo, Qualcomm is now working with Changxin Memory Technologies (CXMT) to develop custom DRAM tailored for smartphones.
Since a large portion of DRAM manufacturing capacity is currently used for high-bandwidth memory (HBM), manufacturers are focusing less on mobile-focused memory, creating a shortage in the industry.
This imbalance is affecting different segments in different ways. Flagship phones can absorb rising costs more easily, but budget and mid-range devices have less flexibility.
Why could this be the right move?
Memory has quietly become one of the most expensive parts of a phone. DRAM alone makes up roughly a third of the total bill of materials, and when combined with NAND storage, memory accounts for more than half of the cost of building a typical device. This makes it harder for manufacturers to keep prices stable without cutting corners elsewhere.
There are already signs that the pressure is reshaping production strategies. Both Qualcomm and MediaTek are said to have scaled back orders for their mid-range 4nm chips. The reduction reportedly means tens of millions fewer chips.
In that context, Qualcomm’s collaboration with CXMT is a good move, if true. By working directly with a memory manufacturer, Qualcomm could gain more control over supply and maybe stabilize costs for its partners.
The partnership also has a geographic angle. China remains the largest smartphone market, and many of Qualcomm’s biggest customers are based there. Custom DRAM developed with CXMT could primarily serve that ecosystem, which will help local manufacturers navigate the current constraints more effectively.
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(Via)
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