AI-driven memory demand may push up prices of smartphones, PCs and graphics cards

Rising DRAM and NAND memory prices, driven by growing investment in AI infrastructure, could increase the cost of consumer electronics, as hardware manufacturers face mounting component expenses and prepare for higher production costs.

Consumers planning to purchase a new smartphone, laptop or graphics card may soon face higher prices as memory chip costs continue to climb. Industry reports indicate that global semiconductor manufacturers are preparing for another round of price increases, fuelled by surging demand for artificial intelligence (AI) infrastructure and tighter memory supplies.

According to media reports citing industry sources, Samsung Electronics has informed several hardware manufacturers of its plans to raise the average selling prices of DRAM memory chips by as much as 20% during the next quarter. The reported revision follows earlier increases in memory pricing as chipmakers seek to capitalise on strong demand from enterprise AI deployments.

AI infrastructure drives memory demand

The latest price adjustments are being linked to the rapid expansion of AI data centres, where advanced memory components are essential for training and running large AI models. As technology companies continue investing heavily in AI infrastructure, semiconductor manufacturers are allocating more production capacity to enterprise-grade memory products, reducing the availability of chips for mainstream consumer devices.

Industry analysts say this shift has tightened supplies of general-purpose memory, placing sustained upward pressure on prices. Reports suggest Samsung's DRAM prices have already recorded substantial increases this year, reflecting the strong demand environment and evolving production priorities across the semiconductor industry.

Research firm TrendForce has projected that overall consumer DRAM contract prices could rise by around 13% to 18% in the coming quarter, although some premium mobile memory products may experience steeper increases. High-capacity LPDDR5X memory chips, widely used in modern smartphones and portable computers, are expected to remain among the strongest-performing segments. Meanwhile, NAND flash memory, used for device storage, is also forecast to register price increases ranging between 10% and 15%.

Consumers could see higher device prices

Although component price negotiations take place behind the scenes between chipmakers and manufacturers, the impact is likely to be reflected in retail pricing over time. Hardware vendors may find it increasingly difficult to absorb rising production costs, particularly if memory prices continue their upward trajectory.

Several major technology companies have already indicated that escalating semiconductor costs are making it harder to shield customers from higher manufacturing expenses. As a result, future product launches could carry higher price tags or reduced promotional discounts.

Market analysts believe sustained increases in memory costs may slow consumer demand for electronics, particularly in price-sensitive markets. If component prices remain elevated through the coming months, many consumers could postpone upgrading smartphones, personal computers and other digital devices until market conditions become more favourable.