New Phones Are Shipping With Used Memory Chips

By 2027, nearly one in ten new smartphones may contain refurbished memory chips as manufacturers try to manage rising component costs.

A significant shift is underway in the smartphone supply chain, with manufacturers increasingly turning to refurbished components to build new devices. According to a forecast from TrendForce, as reported by TechRadar, between 7% and 9% of all new smartphones could contain reused memory chips by 2027. This practice, sometimes called “tech cannibalization,” is a direct response to the rising costs of key components like DRAM. While currently most common in budget handsets, the trend is expected to expand as companies seek to protect their margins without passing on the full cost of new parts to consumers. This move signals a fundamental change in how phones are made, moving from a model based entirely on new components to one that incorporates recycled parts into the primary production line.

This process involves more than simply pulling a chip from an old phone and placing it in a new one. The technique, known as “reballing,” is a complex refurbishment process for integrated circuits. Technicians salvage memory chips from discarded devices, such as unsold inventory or phones at their end of life. The chips are then cleaned, and a new Ball Grid Array (BGA)—a pattern of tiny solder balls that connect the chip to the motherboard—is meticulously applied. This allows the salvaged component to be soldered onto a new logic board as if it were a new part. While this requires specialized equipment and skill, the final cost is substantially lower than purchasing newly fabricated memory, making it an attractive option for manufacturers facing supply chain pressures and high component prices.

Using refurbished parts in manufacturing is not a new concept; industries like automotive have long relied on remanufactured components to manage costs and supply. However, its growing adoption for core components in new consumer electronics represents a major development. This trend aligns with broader pushes toward a circular economy and reducing electronic waste. By salvaging and reusing valuable silicon, manufacturers can lower their environmental footprint. At the same time, it introduces significant variability into a supply chain built on precision and predictability. Unlike the automotive sector, the electronics industry lacks universal standards and certifications for refurbished components, creating uncertainty about their quality, performance, and lifespan compared to their brand-new counterparts.

For business and technology leaders, this trend presents a complex trade-off between cost savings and risk. CTOs and hardware founders must weigh the immediate financial benefits against the potential for higher long-term costs from increased warranty claims and damage to brand reputation if devices fail prematurely. The security implications are even more critical. For security teams, a supply chain that incorporates components of unknown origin is a serious concern. These salvaged chips could introduce hardware-level vulnerabilities or backdoors that are nearly impossible to detect with software-based security tools. As this practice becomes more common, expect to see premium brands potentially marketing their use of “100% new components” as a key differentiator, while the industry may face pressure to develop certification standards to ensure the reliability and security of refurbished parts.

For engineering and security leads, this trend introduces significant hardware-level risks. Using refurbished memory complicates supply chain security, making it harder to verify component integrity and opening potential new vectors for hardware-based attacks. It also raises questions about long-term device reliability and performance consistency.

This shift represents a trade-off between lower manufacturing costs and potential brand damage from hardware failures or security breaches. Companies adopting this practice may gain a competitive edge on price, but they also assume greater risks related to product quality, warranty claims, and supply chain vulnerabilities.