Media365
A global memory supply shock is sweeping through the electronics industry, as surging component costs threaten to squeeze China’s smartphone and broadband equipment manufacturers.
New data from TrendForce and Counterpoint Research point to mounting risks across the consumer electronics supply chain, with memory prices soaring amid a supply crunch driven by relentless demand from artificial intelligence data centres.
Prices for memory used in consumer devices – from PCs and entry-level smartphones to routers and set-top boxes – had risen by more than 600 per cent over the past year, according to Counterpoint Research data released on Thursday.
For many Chinese tech companies, the fallout is becoming a fight for survival.
Rising memory costs were expected to weigh on global smartphone production in 2026, with output projected to fall about 10 per cent year on year to roughly 1.1 billion units, TrendForce said in a report on Wednesday.
Domestic vendors focused on price-sensitive, entry-level segments – including smartphone vendors Xiaomi and Transsion – were particularly exposed to cost swings and were likely to see “significant downward revisions to production” in 2026, the firm said.
Both companies have already moved to rein in shipment targets.
