AI Memory Shortage Triggers Price Hikes for TVs and Audio Gear
Key Points
- AI workloads are consuming a large share of NAND flash, DRAM and hard‑drive supply.
- Smart TVs, soundbars, and high‑resolution audio players rely on RAM and NAND storage.
- Higher memory prices are expected to raise costs for budget audiovisual products.
- Memory manufacturers are shifting focus to data‑center chips, reducing consumer supply.
- New memory production capacity is not expected until around 2027.
- Manufacturers may limit specifications or delay product launches in response.
A surge in artificial‑intelligence demand is straining the supply of memory chips, causing shortages and price spikes for consumer audiovisual products. Smart TVs, soundbars, high‑resolution audio players and other devices that rely on RAM and NAND storage are facing higher component costs, especially at the budget end of the market where profit margins are thin. Manufacturers may scale back specifications or delay launches until new production capacity, expected around 2027, eases the crunch.
AI Demand Fuels Memory Shortage
Artificial‑intelligence workloads are consuming a large share of available NAND flash memory, DRAM and hard‑drive capacity. Industry reports note that AI firms are ordering massive quantities of semiconductor wafers, representing a significant portion of global production. This surge is driving up prices for the memory components used in many consumer devices.
Impact on Audiovisual Devices
Although audiovisual equipment does not typically need as much memory as PCs or smartphones, it still relies on RAM and NAND storage to function. Smart speakers, smart TVs, in‑car entertainment systems and high‑resolution audio players all contain memory chips. As component prices rise, manufacturers are warning that product costs—particularly for budget‑priced models—will increase.
Budget Segment Takes the Hit
The most pronounced effects are expected at the lower‑price end of the market. Products priced around a few hundred dollars have limited profit margins, making it difficult for manufacturers to absorb higher component costs without raising retail prices. Analysts advise shoppers to purchase now before prices climb further.
Shift Toward Data‑Center Memory
Memory makers are prioritizing higher‑margin data‑center chips over consumer varieties. Some companies have even discontinued consumer‑focused memory lines to support strategic customers in faster‑growing segments. This shift reduces the supply of DDR‑type memory used in everyday electronics.
Supply Constraints Until 2027
New production capacity is being added, but the additional plants are not expected to be operational until 2027. In the meantime, manufacturers may limit specifications on upcoming products or postpone launches until market conditions improve. The situation mirrors earlier supply chain disruptions, but with a clear link to AI‑driven demand.
What Consumers Can Do
Given the forecasted price hikes, consumers are encouraged to buy devices sooner rather than later. Keeping an eye on product announcements and price trends can help avoid paying inflated costs once the shortage intensifies.