Hyderabad: A global memory chip shortage emerged as bad news for consumers planning to buy new smartphones, laptops or televisions, with prices expected to rise in the near term.
The shortage intensified after demand surged from the artificial intelligence sector. Chipmakers diverted capacity toward AI-focused components, according to market sources. As a result, supplies of memory chip products used in consumer electronics tightened, affecting everyday gadgets.
Global construction of AI data centres picked up pace in recent months. Major manufacturers such as Samsung and SK Hynix prioritised high-margin, high-bandwidth memory production. Consequently, the availability of DRAM and NAND flash used in phones and laptops declined. Prices of some chips rose by as much as 60 per cent during this period.
Memory chip shortage hits phones, laptops and TVs
Market analysts said the memory chip crunch could lift prices of smartphones, televisions and laptops by 4 to 8 per cent within two months. The impact had already reached India. Smartphone brands such as Vivo and Nothing raised handset prices by ₹3,000 to ₹5,000.
Industry bodies warned of weaker demand. The All India Mobile Retailers Association said mobile phone sales in 2026 could decline by 10 to 12 per cent due to higher prices linked to the memory chip squeeze. Retailers reported that some buyers delayed purchases as costs climbed.
Experts also cautioned that manufacturers might seek savings elsewhere. They warned that companies could compromise on display quality or other components to offset higher memory chip costs. Such steps, they said, could affect overall product quality.
Analysts added that relief was unlikely soon. New fabrication plants would take time to come online. Therefore, the memory chip shortage was expected to persist until 2027, keeping pressure on electronics prices worldwide.