Global consumer electronics prices are expected to rise sharply in 2026 as surging demand for memory chips and semiconductors used in artificial intelligence accelerates a supply crunch, the Financial Times reported.
Major electronics manufacturers including Dell (DELL), Xiaomi (XIACF) Lenovo, and Raspberry Pi have warned customers that persistent chip shortages will drive up production costs, forcing price increases of between 5% and 20% across a wide range of products.
On average, consumer electronics prices worldwide could rise by around 20%, according to industry estimates cited by the Financial Times. Analysts say the rapid global expansion of data centers designed to support advanced AI models is a key factor behind the shortage.
Demand for high-bandwidth memory chips, which are essential for AI workloads, has surged, prompting chipmakers to prioritize these components over lower-end semiconductors commonly used in consumer electronics.
South Korea’s Samsung Electronics (SSNLF) and SK Hynix, the world’s two largest memory chipmakers, have both indicated that orders for 2026 already exceed their current production capacity. This imbalance is expected to further strain supply chains.
Citigroup analyst Peter Lee told the Financial Times that chip inventories are likely to tighten further next year, warning that meaningful relief is unlikely before 2027.
Meanwhile, geopolitical and policy factors are also adding pressure. Reuters reported late last year that Chinese authorities have informally instructed chipmakers to ensure at least 50% of their equipment is domestically produced, a move that could further complicate global semiconductor supply chains.