AI-induced Memory shortage is changing how devices are built, Fairphone says memory now 60% of materials cost — smaller laptop and phone makers are redesigning products and have to test for fake chips

With the ongoing memory shortage, smaller smartphone and laptop manufacturers are reportedly looking at new ways to tackle the problem. While some are changing how they design their products, others are placing orders months in advance and are even forced to test incoming memory chips to make sure they are not fake. A Reuters report suggests that more than the price, availability has become a bigger problem, with manufacturers struggling to secure enough chips in the first place. Still, device makers like Fairphone say that memory now makes up nearly 60% of a device's bill of materials.

Back in July, memory maker SK Hynix’s CEO Kwak Noh-jung said that 2027 will be the "worst year" for the ongoing memory shortage and expects the memory crunch to last until 2030. For smaller manufacturers, however, simply paying more for memory isn't always enough. The situation is particularly difficult for budget-oriented phones and laptops, where memory makes up a much larger portion of the overall product cost.

According to Raymond van Eck, CEO of repairable-phone maker Fairphone, memory can account for almost 60% of the bill of materials in phones costing around $400. That itself is worrying, as a recent Counterpoint Research report expects global smartphone shipments to fall 13.9% this year to 1.08 billion units, marking the largest annual decline on record.

Finnish phone maker Jolla has designed two motherboard versions, allowing it to switch between combined packages for discrete chips depending on availability. The company is also testing samples from every batch it receives to ensure new memory isn't being sold as refurbished hardware.

Similarly, laptop manufacturer Framework has been able to rely on its highly modular approach where customers can install memory salvaged from older laptops or opt for second-hand units, giving the company and its users another way to deal with limited supply. The company is also placing non-cancellable orders well in advance, even when it doesn't know the final price or exact delivery volume.

Back in July, it nearly doubled memory pricing for 32GB and 64GB variants of the Framework Laptop 13 Pro after receiving a cost update from its LPCAMM2 supplier. However, after sourcing new inventory at a reduced cost, the company recently announced a price drop for the same, including retroactive orders that have already shipped.

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