Smartphone brands are turning to an unusual solution to cut costs amidst the current crisis in the memory industry: reusing 5-year-old DRAM from old phones. According to a new report, several Chinese brands are recovering DRAM from used phones and installing it in newer models.
Phone manufacturers may benefit from this strategy, ensuring steady production despite earlier reductions due to high memory costs and LPDDR chip shortages.
Utilizing previously used parts can lower expenses and maintain a consistent supply of phones in the market.
Certain companies are considering the use of DRAM chips aged five to six years, extracted from older devices, tested, and integrated into new circuit boards, which, despite requiring effort, can be more cost-effective than purchasing new memory.
China’s Huaqiangbei market has become a hub for this trade, with sellers buying, repairing, and reselling parts from old devices.
Refurbished memory requires thorough examination prior to installation in new phones, as its longevity doesn’t guarantee functionality, and defective chips may lead to issues.
Rising DRAM prices continue to put pressure on the tech industry, with some types costing more per square millimeter than advanced TSMC N2 silicon. Other tech firms, such as Google, are also finding ways to reuse older hardware, like developing adapters that let it use DDR4 memory taken from retired servers in newer AI systems.
Major PC makers, including Lenovo, HP, and Dell, have signed long-term deals with memory suppliers to secure stock for 2027. In contrast, phone makers remain more exposed to sudden price changes, making the reuse of older components a potential solution to maintain shipment targets.
The practice of reusing DRAM may help smartphone brands protect their production plans, especially for cheaper models. Still, it remains to be seen how widely this practice will spread and whether buyers will notice any difference in daily use, as the final results will depend on the chip’s condition and how well it works with the new hardware.