Samsung Considers Adopting Chinese DRAM to Reduce Galaxy A Series Costs

According to a report by South Korean tech media outlet Asia Times, Samsung Electronics is seriously assessing the feasibility of adopting low-cost, domestically produced Chinese mobile DRAM in mid-to-low-end smartphones such as the Galaxy A series, aiming to drastically reduce overall manufacturing costs.

Samsung Electronics currently holds only a 0.6% market share in China's smartphone market. Analysts believe that if this strategy is implemented, it could help boost the overall revenue scale of Samsung's Mobile Experience (MX) division.

The MX division is currently facing severe profitability pressures—multiple South Korean securities firms predict that Samsung's MX division may incur losses in the second quarter of this year, with estimates ranging from 200 billion to 1 trillion Korean won. Samsung Electronics stated it cannot confirm the related reports.

Sim Woo-jung, an expert at the Korea Institute for Industrial Economics & Trade specializing in home appliances and digital transformation, said that as Chinese companies' demand for domestically produced DRAM continues to grow, international players like Apple and Samsung may also consider adopting Chinese-made DRAM due to cost pressures.

He believes that Samsung's ability to expand supply of low-cost models such as the Galaxy A series would have a tangible impact on increasing market share.

Sim Woo-jung also pointed out that given the market's existing expectations of a second-quarter loss for Samsung's MX division, the urgency and attention surrounding this strategy will further increase.