An intra-company squabble is taking place at Samsung. The latter's DS semiconductor unit has shockingly refused an order from Sammy's Mobile Experience (MX) business segment for more than a year's supply of DRAM (Dynamic Random Access Memory) chips for Galaxy handsets. These are the chips that store the data and programming codes for all of the apps that you currently have open on your phone.
What DRAM chips do for your phone
LPDDR (Low-Power Double Data Rate) memory helps with the multitasking capabilities, performance, and even the battery life of a phone. When you open an app on your phone, the app's core program code and active data moves from slower UFS (Universal Flash Storage) and NAND flash storage to the faster (yet battery efficient) LPDDR DRAM. This allows the CPU to process the data instantly and open apps without a lag.
Should Samsung's chip unit agree to a contract with its phone business?
Yes. Otherwise, Galaxy prices will rise.
100%
No. The DS unit should grab the money while it can.
0%
So yeah, the DRAM is an important component that your smartphone needs. It also is becoming a pricier component with the cost of a 12GB DRAM chip rising to $70, which is more than double the $33 price seen for the chip at the start of this year. According to the Seoul Economic Daily (Sedaily), Samsung's MX division sought a DRAM supply contract covering more than 12 months. The semiconductor unit rejected the request deciding instead to take advantage of the surge in DRAM prices to sell the chips to other phone manufacturers.
Samsung had to call in executives to ease the tension between divsions
Instead, Samsung's MX division will have to request new DRAM supplies quarterly, amid a rising price trend. This could result in Samsung deciding to hike prices on the upcoming Galaxy S26 flagship series. The report from Sedaily says that the situation between the two Samsung units became so tense that high-level Samsung executives had to get involved in negotiations between the two business groups.
Samsung's DS unit produces DRAM chips for smartphones. | Image credit-Samsung
The Mobile Experience unit (MX) was able to guarantee a supply of the much-needed DRAM chips only for the fourth quarter which started in October and concludes at the end of December. The DS division does have the right to refuse the MX division's request to supply it for more than a year.
Samsung, as a company, will be in the chips next year
Samsung is expected to be in the chips with its chips business next year. Besides taking advantage of rising DRAM and NAND flash storage prices, Samsung Foundry will ship 2nm Gate-all-around (GAA) chips such as the home-grown Exynos 2600 application processor (AP), which is expected to power the Galaxy S26 and Galaxy S26+ in Europe and South Korea.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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