Tokyo – Get ready: the price of phones, laptops, and everyday gadgets may go up next year.
Manufacturers and analysts are warning that a major spike is coming, and the reason is simple — AI data centers are buying up huge amounts of the same memory chips used in consumer electronics.
Big tech companies are pouring massive money into building the hardware behind tools like ChatGPT. Their demand for memory chips is so strong that it’s tightening an already-tight supply chain, one that chipmakers purposely keep limited to prevent prices from falling.
Xiaomi president Lu Weibing said this week that pressure on memory supplies in 2026 will be “far greater” than what we’re seeing this year. And he didn’t sugarcoat it — retail prices for tech products will likely rise sharply.
Industry experts agree.
William Keating from Ingenuity, a semiconductor consulting firm, said the shortage will hit PCs, smartphones, and servers across the board. His conclusion?
Consumers will end up paying more.
What’s causing the squeeze?
AI systems require enormous amounts of DRAM and NAND — the same chips found in phones, laptops, tablets, and countless other devices. With both AI and consumer tech chasing the same components, prices are jumping fast. That means big revenue boosts for chip giants like Samsung, SK hynix, Micron, and SanDisk.
Samsung has already warned that AI-related server demand is exploding and far outpacing supply. The company even announced a new semiconductor plant in South Korea to keep up. SK hynix also reported record earnings thanks to booming DRAM and NAND prices.
Analysts at TrendForce say memory prices are now in a solid upward cycle, forcing electronics brands to push retail prices higher. They’ve also cut their global production forecasts for smartphones and laptops, expecting the shortage to continue.
Even cars could feel the impact — though they rely less heavily on memory chips than phones and computers do.
China’s biggest contract chipmaker, SMIC, says some customers are now hesitant to place new orders. They’re simply unsure how many devices the industry will be able to produce if memory chip supplies stay unpredictable.
So why is supply so tight?
Two reasons:
- AI demand is much higher than expected.
- Chipmakers cut investment in new capacity on purpose to avoid another big price crash like the one that cost them tens of billions in the past.
As Keating put it:
“Keep capacity tight, keep prices high” — that’s the strategy.
Stephen Wu from Carthage Capital says the increases in chip prices are “huge,” and the trend isn’t slowing down. He expects higher costs, longer wait times, and stricter supply contracts into at least early 2026.
In short: AI is booming — and your next phone or laptop might cost more because of it.
