Consumers may have to pay more for smartphones, laptops, and other gadgets next year as AI data centres rapidly absorb memory chips traditionally used in consumer electronics, manufacturers and analysts warn.
Tech giants are investing enormous sums into building the infrastructure behind AI tools like ChatGPT, creating massive demand for memory components. This surge is straining a supply chain that chipmakers intentionally keep tight to prevent price drops that would hurt profits.
Xiaomi president Lu Weibing cautioned this week that pressure on memory chip supply will be “far greater than this year,” predicting noticeable increases in retail prices across electronic products in 2026.
William Keating of Ingenuity consultancy echoed the warning, saying shortages will affect PC, smartphone, and server manufacturers — ultimately pushing costs onto consumers.
The most sought-after components are DRAM chips and NAND storage, crucial for everyday devices but also vital for processing the enormous data loads required by generative AI. Their rising demand has fueled significant revenue growth for major chip producers, including Samsung, SK hynix, Micron, and SanDisk.
Samsung recently announced plans for a new semiconductor plant in South Korea to help meet demand, while SK hynix posted record quarterly earnings driven by rising DRAM and NAND prices. TrendForce analysts report that the memory market has entered a strong upward pricing cycle, forcing brands to increase retail prices. They have also cut global production forecasts for smartphones and laptops for 2026.
Although cars may be less affected due to their lower reliance on memory chips, uncertainty persists. China’s leading contract chipmaker, SMIC, said clients are reluctant to place orders because of doubts about future memory chip availability.
Experts say the shortage stems from unexpectedly high AI-driven demand combined with years of reduced investment in expanding memory chip production. Chipmakers have intentionally maintained limited capacity to prevent another price collapse like the one that previously caused massive industry losses.
Memory chip prices are already rising sharply, and the trend is expected to continue. According to Stephen Wu of Carthage Capital, both consumers and businesses should prepare for higher prices, longer wait times, and more restrictive supply contracts at least through early 2026.
