Memory chip makers post record profits as AI demand drives price rises
Updated
Updated · The Guardian · May 5
Memory chip makers post record profits as AI demand drives price rises
11 articles · Updated · The Guardian · May 5
Samsung reported a 49-fold jump in chip income, SK Hynix tripled revenue, and Texas Instruments raised prices by 15% to 85%.
Microsoft said higher component costs would add $25bn to spending, while Apple and PC makers including Lenovo, Dell and HP warned consumers face pricier devices.
Datacentres are expected to absorb about 70% of memory chips in 2026, tightening supply as Google, Microsoft, Meta and Amazon keep expanding AI infrastructure.
As an 'AI tax' inflates electronics prices, are we creating a new global digital divide?
Is the current AI boom a sustainable revolution or an inflationary bubble on the verge of bursting?
Can tech workers' ethical protests truly stop AI's integration into military and surveillance systems?
Semiconductor Market Shock Q1 2026: Unprecedented 90% DRAM Price Rise and Eightfold Profit Growth Driven by AI
Overview
In Q1 2026, the global semiconductor industry experienced a major shock driven by soaring AI demand, with hyperscalers investing heavily in AI data centers. This surge caused leading memory manufacturers like Samsung and SK Hynix to shift production from traditional memory to high-bandwidth memory (HBM), fueling record profits and severe supply shortages. The resulting supply crunch led to historic price increases for DRAM and NAND flash, pushing memory costs higher in consumer devices and forcing manufacturers to pass these costs to buyers. This shift is reshaping the memory market permanently, with supply constraints expected to persist until new production capacity comes online around 2027-2028, while consumer electronics face price hikes and reduced availability.