Experts Predict Price Surge in Laptops and Smartphones Due to AI Boom

Memory chip shortage may raise prices for electronics and cars by 2026.

Analysts and chip manufacturers have warned of a memory chip shortage that could impact consumer electronics and the automotive industry by 2026, according to CNBC.

On November 14, during an earnings conference call, the CEO of SMIC stated that concerns over a memory chip shortage are prompting clients to hold back orders for other types of chips. The company is China’s largest contract semiconductor manufacturer.

“People are hesitant to place large orders for the first quarter of next year. No one knows how much memory will actually be available—how many phones, cars, or other products it will support,” said Haijun.

According to analysts, supply constraints arise from manufacturers focusing on AI-oriented chips, paying less attention to consumer goods.

“AI development is consuming a large portion of available supplies. 2026 appears to be much larger than the current year in terms of overall demand,” noted Dan Neistadt, Vice President of Research at TriOrient.

AI servers primarily operate on processors that heavily rely on High-Bandwidth Memory.

Suppliers aim to meet as much of the AI demand as possible, as it is a more lucrative sector. Server developers are willing to pay a premium for high-end chips.

“This could be very bad for PCs, laptops, consumer electronics, and the automotive industry, which rely on cheap memory chips,” emphasized Neistadt.

Another Challenge

Another significant hurdle could be the underfunding of the industry observed in 2023 and 2024.

“They are currently building new production capacities, but it will take time to launch,” noted the expert.

Amid limited supply, memory chip manufacturers are raising prices. Samsung has quietly increased them by 60% compared to September.

“With rising memory costs and reduced availability, concerns about production difficulties are growing,” said M. S. Hwang, Research Director at Counterpoint Research.

According to him, the shortage is already affecting low-cost smartphones and consoles, and the range of vulnerable devices may expand.

The expert highlighted that China feels the issue more acutely due to its high reliance on low-cost devices, though it is a global concern.

Due to the memory shortage, consumers will likely have to pay more. Consulting firm TrendForce in a new report predicted that the industry has begun a “sustained cycle of price increases.”

The research group reported future growth in the cost and demand for consumer goods such as smartphones and laptops.

In September, the U.S. consumer price index increased by 0.3% compared to 0.4% the previous month. Year-on-year, without seasonal adjustment, the CPI rose to 3% (in August, it was 2.9%).