Memory shortage spurs smartphone makers to melt used memory off old devices, then re-solder it onto new products

What happened

According to a TrendForce report, the memory shortage is spurring smartphone makers to melt used memory off old devices and re-solder it onto new products (reballing). The current penetration rate is estimated at around 3–4%, with reballed memory primarily used in entry-level and budget smartphone models, and the figure is expected to rise to 7–9% in 2027. Currently, reballed 4GB LPDDR4X memory modules make up the majority of such components on the market, and they are used in 4G smartphones priced below CNY 1,299 (approximately $200). This can help offset rising bill of materials (BOM) costs while keeping entry-level devices affordable. TrendForce expects DRAM prices to rise even further in the first quarter of 2027, which may put additional pressure on smartphone manufacturers, and the use of recycled memory and other lower-specification components could gradually expand beyond the entry-level segment into more premium smartphones. Separately, an electronics hobbyist reportedly converted a $120 SK hynix 2x 16GB DDR5-5600 SODIMM kit purchased from Facebook Marketplace into a desktop memory kit valued at around $1,000 by reballing the chips onto custom desktop DIMM PCBs, with the resulting modules reportedly capable of reaching DDR5-7800 speeds.

Impact and signal

Affected components and suppliers

Source and time

Source: Tom's Hardware · 11/9/2026 · View original source