Samsung is reportedly sourcing key components from Chinese manufacturers to mitigate rising RAM prices, according to a DealSite report. The South Korean tech giant has replaced its domestic OLED panels in mid-range Galaxy A57 models with Chinese CSOT-made alternatives and switched hinge suppliers for the Galaxy Z Flip7 from local Vatec to Chinese Huanli. Chinese ultrawide camera modules are also appearing in Galaxy S series devices. These moves aim to absorb component cost surges without passing price hikes to consumers, particularly for budget-friendly devices where margin flexibility is limited.

The strategy reflects a broader industry trend as memory chip prices have surged over 30% year-on-year. While Samsung maintains premium components in flagship models, the adoption of Chinese parts in mid-range devices highlights a pragmatic shift. Analysts note that Chinese suppliers now match Korean quality standards while offering cost advantages, challenging previous assumptions about component sourcing. This transition could reshape Samsung's supplier ecosystem and impact domestic manufacturers reliant on the company's business.

Industry experts suggest Samsung's reliance on Chinese components will grow as semiconductor costs remain elevated. The shift risks disrupting South Korea's component supply chain, potentially affecting local businesses that previously supplied Samsung's devices. However, the company argues this approach ensures affordability for consumers while maintaining competitive pricing in saturated markets. This shift underscores the intensifying global competition for cost-effective components in the smartphone industry.