Mobile phone brands are turning to recycled memory as soaring DRAM prices threaten affordable devices and squeeze already tight manufacturing budgets | Daily Reports Online
- Reballed memory could account for up to 9% of smartphones in 2027
- Rising DRAM prices are pushing phone makers toward reused memory
- Budget handsets currently account for most smartphones using reballed chips
Rising memory costs are pushing smartphone manufacturers toward an unusual form of component reuse, with refurbished memory expected to appear in more devices by 2027.
TrendForce estimates this approach will account for 3–4% of smartphones in 2026, before its market penetration increases to approximately 7–9% next year.
The shift is being driven by expensive mobile DRAM, which is increasing manufacturing expenses and putting additional pressure on brands serving price-sensitive buyers.
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Reused memory offers manufacturers a cheaper route
Reballed memory comes from integrated circuits removed from existing circuit boards, then prepared for another installation after their original solder connections are carefully replaced.
Those connections use small metal spheres beneath the chip, allowing it to communicate electrically with the board while occupying very little physical space.
During reballing, technicians clear away the existing solder, prepare the contact surface, and attach a fresh set of appropriately sized replacement solder spheres.
The component can then be fitted to another board, although its suitability depends on its condition, handling history, and the quality of the refurbishment process.
TrendForce says 4GB LPDDR4X currently makes up most of the reclaimed supply, with use concentrated in inexpensive 4G handsets costing under CNY 1,299 (~$195).
Buyers in this category are particularly sensitive to retail prices, giving manufacturers an incentive to recover usable parts rather than rely entirely on newly manufactured memory.
Using previously installed chips can reduce component expenditure and help brands limit price increases, especially when customers have little room for more expensive smartphone models.
Although reballed memory is currently concentrated in cheaper smartphones, rising DRAM prices could encourage manufacturers to introduce it into more expensive models.
Higher memory costs could extend the practice
TrendForce expects memory price increases to accelerate in Q1 2027, adding pressure to manufacturers already managing expensive production.
That environment could encourage companies to consider older or lower specification parts in more costly products.
Even with faster adoption, reclaimed memory is expected to represent a small proportion of the total LPDRAM consumed by smartphones annually.
Consequently, its growing presence is unlikely to reverse the upward movement in contract prices, since its contribution to total memory demand remains limited.
The financial attraction also comes with technical concerns, particularly when manufacturers cannot establish consistent quality across components obtained from different suppliers and refurbishment channels.
Repeated heating can place stress on electronic packages, while damaged contacts or imperfect replacement work may affect electrical performance after installation inside smartphones.
Traditional reballing relies on heating solder until it melts, and component makers generally advise limiting devices to no more than three such heating cycles.
Laser-based methods can concentrate heat around solder contacts instead of warming the entire package, potentially reducing thermal exposure during component refurbishment and subsequent installation.
Manufacturers therefore face a choice between immediate savings and possible costs arising from failures, repairs, warranty claims, or dissatisfied customers over extended periods.
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