Qualcomm is reportedly exploring a partnership with Changxin Memory Technologies (CXMT) to develop custom DRAM for smartphones, a move that could directly address growing supply and cost pressures in the industry.
The backdrop to this development is a tightening memory market. DRAM prices have been climbing due to increasing demand from AI-related hardware and limited production capacity. Much of the industry’s resources are now being funneled into high-bandwidth memory (HBM), which is used in AI systems, leaving less room for mobile-focused DRAM production. As a result, smartphone manufacturers are facing a noticeable shortage.
Reports from Wccftech and South Korea’s JoongAng Ilbo suggest that Qualcomm’s collaboration with CXMT aims to create DRAM specifically optimized for smartphones. If realized, this approach could give Qualcomm greater control over supply while helping its partners manage costs more effectively.
The impact of rising memory prices is not evenly distributed. Flagship devices can better absorb higher component costs, but midrange and budget phones are under more pressure. Memory has quietly become one of the most expensive parts of a smartphone. DRAM alone accounts for roughly a third of the total bill of materials, and when combined with NAND storage, it makes up more than half of the overall cost. This makes it increasingly difficult for brands to keep prices competitive without making trade-offs elsewhere.
There are already signs that the strain is affecting production strategies. Both Qualcomm and MediaTek are said to have scaled back orders for midrange 4nm chips, with reductions reportedly reaching tens of millions of units.
The reported partnership also carries regional significance. China remains the largest smartphone market, and many of Qualcomm’s key customers are based there. Working with CXMT could allow Qualcomm to better support local manufacturers, helping them navigate ongoing supply constraints more efficiently.
While the collaboration has yet to be officially confirmed, it highlights a broader shift in the industry. Control over critical components like memory is becoming increasingly important, and partnerships like this could play a key role in stabilizing both supply chains and pricing in the future.