Samsung Electronics is exploring the adoption of domestic Chinese semiconductors including DRAM from ChangXin Memory Technologies (CXMT) to cut device manufacturing costs, with the aim of ramping up supply of mid-to-low-end products such as its Galaxy A series and capturing greater market share in China, according to reports.
Per data from IDC, Samsung holds a mere 0.1% share of China’s smartphone market, a stark contrast to its arch-rival Apple, which commands 18.1% and ranks second only behind Huawei.
Amid mounting pressure from soaring memory prices, smartphone makers including Apple, Xiaomi, OPPO and vivo have proactively cut production volumes on the expectation that higher output would only deepen per-unit losses.
Samsung is looking to capitalize on this gap. While domestic Chinese manufacturers remain hesitant amid cost pressures, Samsung is strategically adopting China-made DRAM to bring down overall device costs, using this as a foundation to expand Galaxy A series supply.
However, some analysts point out that the original reports originated from South Korean media and may carry a narrative intended to paint a favorable picture for Samsung. For one thing, CXMT’s DRAM chips are not as cheap as widely assumed; some sources even indicate their pricing is higher than DRAM manufactured by Samsung itself.
Additionally, given Samsung’s already low shipment volume in China, its required DRAM procurement volume is correspondingly small, meaning it may end up paying an extra premium due to limited order scale.
More crucially, from a capital perspective, AI clients are committing far larger sums to CXMT than Samsung’s smartphone division can offer, making it nearly impossible for Samsung to secure volume-based discounts.
Apple is also in talks with CXMT for potential cooperation, though its objective is not to secure cheaper components but to diversify supply chain risks, as the majority of global DRAM capacity is currently absorbed by AI customers.
(Reprinted from https://news.eccn.com/）