Qualcomm is reportedly taking an unusual step to deal with the ongoing smartphone memory crunch: working directly with China’s CXMT to create custom DRAM designed specifically for mobile devices. If this collaboration moves forward at scale, it could become a pivotal development for an industry that’s been squeezed by persistent memory shortages and rising component costs.
Earlier this year, Qualcomm acknowledged that most DRAM paired with its smartphone processors is typically purchased by device makers themselves, not by Qualcomm. Even so, the company emphasized that its platforms are validated across a wide range of memory suppliers. Now, a new report suggests Qualcomm is going further than qualification and validation—partnering with CXMT, a Chinese DRAM manufacturer, to develop tailored memory chips aimed at smartphones.
The timing makes sense. The mobile market is facing a chronic DRAM supply squeeze largely because major memory production capacity has been redirected toward High Bandwidth Memory (HBM), which is in heavy demand for AI servers and accelerated computing. With more fabrication resources chasing higher-margin AI memory products, conventional mobile DRAM has become harder to secure—especially in the volumes phone makers need.
These pressures are hitting budget-friendly phones the hardest. In entry-level handsets, DRAM reportedly accounts for about 35% of the bill of materials, while NAND storage adds another 19%. Combined, memory and storage can represent roughly 54% of the total cost of building a low-cost smartphone. That leaves manufacturers with little room to absorb price increases without raising retail prices—something that’s particularly difficult in the competitive low and mid-range segments.
At the same time, there are signs that chipset production plans are being adjusted to match these constraints. Reports indicate that both Qualcomm and MediaTek have reduced their output pace for 4nm chip production—silicon commonly used in many affordable and mid-tier smartphones. The estimated reduction is said to amount to roughly 20,000 to 30,000 wafers, which could translate into around 15 million to 20 million fewer mobile chips.
Against this backdrop, a Qualcomm-CXMT effort to develop mobile-focused DRAM could be an attempt to stabilize supply lines, reduce bottlenecks, and protect shipment schedules. However, any resulting memory products are widely expected to appear primarily in smartphones sold within China, where CXMT’s presence and supply relationships are strongest.
If accurate, the partnership highlights how severe the smartphone memory shortage has become—and how chipmakers and device brands are increasingly looking for new supply chain strategies to keep affordable phones viable in a market dominated by AI-driven memory demand.
