Significant increase in memory prices makes IT equipment account for a large share of costs

In 2026, the semiconductor industry is seeing a sharp upward trend in both manufacturing technology and consumer costs, primarily driven by the transition to more advanced process nodes and a severe shortage of essential memory components. 

Surging Costs for Consumers 

Hardware prices for smartphones and PCs are projected to rise significantly throughout 2026: 

• Price Increases: Industry analysts estimate consumer electronics prices could rise by 50% on average. Leading PC vendors like Lenovo, Dell, and HP have warned of 20–30% hikes specifically for the second half of 2026.

• Memory Crisis: A critical shortage of DRAM and NAND flash memory—fueled by massive demand from AI data centers—is the primary driver. Memory prices rose 50% in late 2025 and are expected to jump another 100–150% by Q2 2026.

• Smartphone Impact: The average selling price of smartphones is expected to rise by 6.9% in 2026. Manufacturers may be forced to downgrade other components like cameras or displays to offset these surging chipset and memory costs. 

Technological Advancements ("Going Up" in Performance)

Major chipmakers are launching next-generation platforms featuring higher performance and efficiency: 

• Intel 18A Process: Intel officially launched the Core Ultra Series 3 (formerly Panther Lake) at CES 2026. These are the first chips built on the 18A process, which Intel claims are the most advanced ever manufactured in the U.S..

• The 2nm Era: 2026 marks the widespread debut of 2nm manufacturing technology.

  • Qualcomm: Expected to release the

    Snapdragon 8 Elite Gen 6

    (and a premium "Pro" variant) built on TSMC's 2nm process.

  • Apple: Anticipated to debut the

    A20 Pro

    chip on the same 2nm node for the iPhone 18 series.

• AMD Ryzen AI 400

  : New mobile processors are launching by March 2026, offering up to a 70% boost in content creation performance over previous generations. 

Industrial and Infrastructure Shifts

• AI Data Center Boom: Global semiconductor revenue is forecast to hit $800 billion in 2026, up from $728 billion in 2025, with generative-AI chips accounting for a massive portion of this value.

• Supply Allocation: Major manufacturers like Samsung and Silicon Motion report that the majority of their 2026 capacity is already "sold out," prioritizing high-margin AI server orders over consumer devices