Memory crunch prompts smaller device makers to redesign products and test for fake chips
The ongoing memory shortage is forcing smaller smartphone and laptop manufacturers to rethink product designs and procurement strategies. Fairphone's CEO reports that memory now accounts for nearly 60% of the bill of materials in budget phones. Some makers are placing orders months in advance and testing incoming chips to avoid counterfeits.
The shortage stems largely from AI data centers absorbing global memory production, a trend that has pushed suppliers like SK Hynix to project the crunch continuing through the decade. Smaller brands face the dual challenge of securing supply at all and verifying they receive genuine new components rather than refurbished parts.
Jolla's dual-motherboard design and Framework's modular systems represent adaptive engineering responses, while both companies now commit to early, non-cancellable orders despite uncertain pricing. Fairphone's estimate that memory constitutes roughly 60 percent of a $400 phone's component costs illustrates how severely the shortage squeezes budget-tier devices.
The prolonged memory shortage could reshape consumer access to affordable electronics, as budget smartphones and laptops face rising costs or delayed availability. Smaller manufacturers may pass higher component expenses to buyers or simplify product lines, potentially limiting choice in lower price tiers. Consumers in price-sensitive markets could be most affected, while the trend toward modular designs might offer some reprieve by extending device lifespans through reusable components.