Samsung Counteracts the Memory Crisis by Relying on Chinese Suppliers, Even for the S26

To counteract the memory crisis that is affecting the entire tech industry, Samsung has chosen to reduce the cost of other components by relying on Chinese suppliers to obtain the necessary elements to assemble its smartphones. This is a curious choice, especially since Samsung's memory division is benefiting from the crisis, with a substantial increase in revenues, partly due to Apple, which is buying up all available memory at inflated prices to put its rivals in trouble.

Samsung Bets on Chinese Suppliers

Samsung's strategy is clear: Chinese suppliers can provide components at lower prices, offsetting the rising costs of memories. The new mid-range Galaxy A37 and A57, for instance, use panels produced by the Chinese CSOT instead of the more expensive panels from Samsung Display, even if they are 'made in-house'.

For the Galaxy Z Flip 7, Samsung has changed its hinge supplier from the Korean KH Vatec to the Chinese Huanli. It is also noteworthy that some camera sensors (especially the ultra-wide ones) used in the Galaxy S26 are now supplied by Chinese companies. In the future, other smartphones and tablets from the Korean company are expected to feature components made by Chinese firms.

According to a recent report, Samsung will increasingly depend on Chinese components in the future, aiming to keep smartphone production costs low. This decision is also linked to an improvement in the quality of Chinese components, which, although cheaper, are now capable of delivering good final quality.