Smartphone Manufacturers Turn to Recycled Memory Chips Amid RAM Shortage

13.11.2026 3 minutes Author: Newsman

Due to rising RAM prices, smartphone manufacturers have begun installing refurbished memory chips from old electronic devices in new budget smartphones. This helps keep prices down, but such phones may be more prone to freezing, crashing apps, or shutting down unexpectedly.

According to TrendForce, smartphones equipped with reused memory chips account for approximately 3–4% of the market in 2026, and this share could rise to 7–9% in 2027. The trend is driven by a RAM shortage and rising component prices, making it increasingly difficult for manufacturers to produce affordable devices.

Analysts at Counterpoint Research confirm that some budget smartphone manufacturers are already using refurbished memory chips to reduce production costs. This involves a process known as reballing, in which a chip is removed from an old circuit board, its worn or damaged solder balls are replaced, and the component is installed on a new board. However, technical challenges mean that the practice remains relatively uncommon.

What Are the Risks of Reused RAM?

At first glance, installing older memory chips may seem like a reasonable temporary solution amid the ongoing RAM shortage. Some components can continue functioning reliably for years, even after prolonged use. For example, a Reddit user pointed out that the Cricket Ovation 4 smartphone is already being sold with refurbished memory.

However, the reliability of these chips depends on their previous operating conditions and the quality of the refurbishment process. Prolonged use, overheating, and electrical stress can gradually degrade memory components. In addition, reballing requires heating the chip to high temperatures, placing further stress on the component.

As a result, smartphones equipped with reused RAM may experience stability issues. Potential problems include unexpected app crashes, system freezes, and sudden shutdowns. However, this does not mean that every refurbished memory chip will necessarily fail.

The rapid development of artificial intelligence has increased demand for memory chips, while rising component prices are already affecting ordinary consumers. Higher RAM prices are making computer upgrades and other electronics more expensive. Manufacturers are increasingly being forced to find alternative ways to reduce costs, particularly in the budget segment.

Meanwhile, the component shortage is affecting more than just smartphones. For example, AI educator and YouTuber Nick Saraev reported that Amazon closed his account after he attempted to purchase four Nvidia DGX Spark AI supercomputers. The company also canceled orders for Nvidia graphics processors but did not officially explain why. One possibility is that Amazon is attempting to combat resellers.

Microsoft has also proposed a way to make more efficient use of computing hardware. The company patented a technology that could allow PC owners to share their graphics cards’ processing power for AI training in exchange for compensation. However, it remains unclear whether Microsoft intends to implement such a system.

Reusing RAM could temporarily help smartphone manufacturers keep prices under control, but it also increases the importance of component quality testing. For consumers, this means that even a brand-new smartphone may not necessarily contain entirely new chips.

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