Memory Chip Shortage to Send TV Prices Soaring in 2026

Electronics companies are literally cannibalizing their own products. Manufacturers are stripping memory chips from devices sitting in warehouses to support new product launches—a desperate measure that signals just how severe the memory shortage has become.

The AI boom has created an unprecedented supply crunch that's about to hit consumer wallets hard in 2026. Multiple electronics makers have already slashed their shipment forecasts, while some are resorting to the extreme measure of dismantling existing inventory to salvage memory components for new devices, Nikkei Asia reported Monday.

When AI Eats Everything

The culprit is clear: artificial intelligence's voracious appetite for high-performance memory. From ChatGPT servers to autonomous vehicles, AI applications demand cutting-edge memory chips that can handle massive data loads at lightning speed.

High-bandwidth memory (HBM) prices have skyrocketed by over 300% in the past year. Companies like SK Hynix and Samsung are prioritizing these premium chips for AI data centers and servers, leaving consumer electronics manufacturers scrambling for leftovers.

The math is brutal but simple. The same memory chip that goes into a TV for $10 can be sold to an AI company for $50-100. Memory manufacturers aren't charities—they're following the money.

"Securing memory chips is our biggest challenge right now," admitted an executive at a major Taiwanese electronics manufacturer. "We've had to cut shipment plans by 20-30% for some product lines."

The Price Tag of Progress

Consumers will feel this shortage in their wallets. TVs, smartphones, laptops—virtually every electronic device that requires memory—faces price increases. Industry experts predict TVs will be hit hardest because they operate on thinner margins than high-end AI hardware, making it harder to absorb rising component costs.

One TV manufacturer revealed that memory costs have jumped 40%, forcing difficult decisions about pricing. "We can't absorb all of this increase," the executive said. "Consumer price hikes are inevitable."

The timing couldn't be worse for households already dealing with inflation. A 55-inch 4K TV that cost $400 last year might jump to $500-600 by mid-2026, industry analysts predict.

A New Pecking Order

This shortage reveals a fundamental shift in the electronics ecosystem. AI has become the industry's new kingmaker, dictating where precious resources flow. The old hierarchy—where smartphones and PCs drove semiconductor demand—has been upended.

Memory manufacturers face a capacity constraint that can't be solved overnight. Building new fabrication plants takes 2-3 years and billions in investment. Meanwhile, AI demand continues accelerating, creating a structural imbalance that will persist well into 2027.

Some companies are adapting by redesigning products to use less memory or switching to alternative storage solutions. Others are exploring long-term supply agreements, even at premium prices, to secure future inventory.

Winners and Losers

The shortage creates clear winners and losers. Memory manufacturers like Samsung, SK Hynix, and Micron are seeing record profits. AI companies with deep pockets can secure the components they need, albeit at higher costs.

But consumer electronics brands—especially those serving price-sensitive markets—face margin compression and potential market share losses. Smaller manufacturers without negotiating power may struggle to survive.

Consumers, meanwhile, become unwitting funders of the AI revolution through higher device prices. They're essentially paying an invisible "AI tax" on every electronic purchase.