FiiO and the Memory Chip Shortage

FiiO is one of the leading manufacturers of Digital Audio Players (DAPs) on the market, and with the shortage of RAM memory chips and the consequent rise in component prices, consumers have become concerned about what will happen in the near future. Hi-Fi Hub has already obtained a response from FiiO’s CEO regarding the issue, but decided to go further and find out which memory manufacturers are being used.

A retrospective for better understanding

After HiBy announced a temporary pause in sales of the DAP M500 x Hatsune Miku (Wi-Fi version) due to the shortage of memory chips, Hi-Fi Hub decided to investigate more deeply what is happening. Basically, this situation has been caused by the heavy consumption of chips by artificial intelligence (AI) servers.

The price of RAM memory for consumer electronics has increased

In addition to the lack of chips available for purchase, the price charged for the component rose significantly in 2025 and is expected to increase even further in 2026, according to a December 19 publication by technology market research firm Counterpoint Research.

“Memory prices are likely to rise 30% in the fourth quarter of 2025 and possibly another 20% early next year, on top of the 50% increases already recorded so far this year.”

The situation worsens further when Counterpoint states that LPDDR4 chips, used in Digital Audio Players, are even scarcer than DDR5.

“One of the key issues is legacy LPDDR4 supply tightness brought on by suppliers shifting output to more advanced chips to service AI demand, which is distorting markets.”

The market research firm adds that, due to the greater shortage of DDR4 chips, their prices are even higher.

“Spot price imbalances are occurring: while DDR5 for servers and PCs is trading at around US$1.50 per gigabit, the older DDR4 used in consumer electronics fetches US$2.10—higher than even advanced HBM3e, which is hovering around US$1.70.”

FiiO founder and CEO James Chung told Hi-Fi Hub that the company absorbed the increase in chip prices this year, but that if prices continue to rise, it will be forced to increase the prices of its DAPs.

“We have already absorbed the increase in memory chip prices internally, taking user affordability into account. However, if prices continue to rise, we will have no choice but to raise our supply prices. If distributors are unable to absorb this increase, it will ultimately result in a higher retail price for the end consumer.”

The memory chip manufacturers used in FiiO DAPs

Each memory manufacturer took a different course of action upon realizing they would not be able to meet market demand due to the heavy consumption of chips by AI data centers. With this in mind, Hi-Fi Hub decided to investigate which companies were chosen to supply components for FiiO’s DAPs.

By analyzing teardown videos of the FiiO M21 and FiiO M27, I discovered that both use modules integrating the processor, RAM, and flash memory from hardware solution companies focused on IoT (Internet of Things). The M21 uses a module from Quectel, while the M27 uses a module from Thundercomm. Each company selected a different memory chip manufacturer for its modules.

In the Quectel SC200V, used in the M21, chips from CXMT (ChangXin Memory Technologies) are employed.

In the Thundercomm TurboX C6490, used in the M27, chips from SK Hynix (H9QT1G6DN6X132) are implemented.

According to Counterpoint’s chart, the largest DRAM memory chip manufacturers are Samsung, SK Hynix, and Micron. CXMT, a Chinese manufacturer, accounts for only 5% of sales.

According to a Reuters source, ChangXin decided to shut down most of its DDR4 chip production. SK Hynix, in turn, said in October that all of its chips are sold out through 2026 and that the memory shortage is expected to last until the end of 2027, according to Reuters.

Fortunately, SK Hynix told Reuters that it is increasing its production capacity in an attempt to meet growing memory demand. However, the company says it plans to open new factories only in 2027 or 2028—that is, the strategy is to ramp up production at existing facilities.

Conclusion

Considering the decline in production of LPDDR4 chips used in Digital Audio Players, together with the sales volume of FiiO’s more affordable DAP models, the trend is that models such as the JM21, M21, and M33 will see larger price adjustments than the FiiO M27. The logic is simple: the greater the usage, the greater the shortage, and the higher the market price of the chip.

Senior analyst Ivan Lam from Counterpoint reports that a similar situation will occur with “budget” smartphones.

“The current shortage is being felt mainly in the lower end of the smartphone market, hitting budget smartphone makers. We are talking here about big increases to smartphone BoMs (Bill of Materials)—upwards of 15% in the case of some models—across the key mid-to-high-end segments, eating into margins or affecting growth. It will probably be both.”