Some Chinese smartphone manufacturers have reportedly started using recycled memory chips from old devices in newly produced phones as the global DRAM shortage continues to drive up prices and disrupt production.
According to Counterpoint Research, several Chinese smartphone brands reduced their production targets during the second quarter of 2026 because of rising memory costs and supply shortages.
However, some manufacturers began increasing their production targets toward the end of the third quarter after gaining access to recycled DRAM chips recovered from discarded smartphones, computers, and servers.
How Recycled RAM Is Used
Manufacturers reportedly recover DRAM chips from older electronic devices, clean them, conduct tests, and install suitable components in new smartphones.
Some companies are also considering using recycled memory exclusively in certain budget smartphone models to reduce manufacturing costs.
The approach allows manufacturers to maintain production without relying entirely on newly manufactured memory chips, which have become more expensive and difficult to obtain.
Reliability Concerns
Although recycled DRAM can help manufacturers reduce costs, analysts have raised concerns about its long-term reliability.
Memory chips that have already been used for five or six years may have a similar amount of service life remaining.
Over time, aging memory cells can degrade, potentially increasing data errors and affecting device performance.
While testing can identify chips that have already failed, it cannot fully eliminate concerns about the long-term durability of reused components.
This creates potential risks for both smartphone manufacturers and consumers, particularly if recycled chips are installed in devices expected to last several years.
Global Memory Shortage Continues
The shortage is being driven partly by growing demand for memory chips used in artificial intelligence servers and data centers.
Major manufacturers, including Samsung Electronics and SK Hynix, are prioritizing higher-margin server memory and high-bandwidth memory (HBM), leaving less production capacity for smartphone memory.
Industry reports suggest that the shortage and elevated prices could continue beyond 2027, putting further pressure on smartphone manufacturers, particularly those producing affordable devices.
According to Counterpoint Research, using recycled DRAM is a temporary response to supply constraints rather than a long-term solution.
The reports have not identified which smartphone brands or specific models are using recycled memory chips. However, the growing practice highlights how manufacturers are adjusting production as memory shortages continue to affect the smartphone industry.
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