According to South Korean media outlet Asia Times, China’s smartphone market has contracted significantly amid turbulence in the global semiconductor industry driven by rising chip and component prices. Samsung Electronics is reportedly considering adopting cost-competitive Chinese-made DRAM chips as a way to strengthen its position in China’s entry- and mid-level smartphone market.
Sources said Samsung is exploring a reverse thinking strategy by incorporating low-cost Chinese mobile DRAM and other locally sourced semiconductor components into its smartphones. The move is intended to reduce manufacturing costs while boosting shipments of budget and mid-range devices in China.
The strategy aims to capitalize on a market gap created as local smartphone makers scale back shipments due to higher component costs fueled by booming demand for AI data centers, which has driven up semiconductor prices. [Icsmart, in Chinese]