The global surge of interest in artificial intelligence has triggered a serious memory chip shortage, putting smartphone prices at risk. Many brands are already preparing to raise the cost of their devices due to the lack of DRAM and NAND chips, caused by the reallocation of production capacity toward AI servers. Prices could rise by 10–20% as early as 2026.

According to industry sources, Samsung, one of the world’s largest memory producers, plans to increase prices for its phones and tablets to offset higher costs for DRAM and NAND. Other brands, including Xiaomi and Oppo, are considering similar measures. The shortage is being worsened by companies like Samsung and SK Hynix, which have redirected production toward high-bandwidth memory (HBM) for data centers, leaving the consumer market with too few standard chips.

The Causes of the Shortage: AI Consumes Resources

The AI boom, ignited by the popularity of models like ChatGPT, has led to an explosive demand for high-performance memory. Hyperscalers such as Alphabet, Amazon, Meta, and Microsoft plan to spend up to $400 billion in 2025 on AI infrastructure — absorbing as much as 40% of the world’s DRAM output. As a result, prices for standard chips used in smartphones, PCs, and servers have skyrocketed: in Q4 2025, DRAM prices rose by 15–30%, and NAND by 5–10%.

Memory manufacturers including Samsung, Micron, and SK Hynix are now restructuring their supply chains. Samsung, for example, has notified clients of price hikes of 15–30% for LPDDR4X and LPDDR5/5X — key memory types used in mobile devices. Analysts at TrendForce predict that this “supercycle” of shortages will last 3–4 years, peaking in 2026–2027. Geopolitical factors, such as U.S. tariffs and manufacturing restrictions in China, are compounding the problem.

Manufacturers Respond: From Samsung to Chinese Brands

Even though Samsung produces its own chips, it isn’t immune to global market pressure. The company is reportedly considering price increases of $50–100 per model for its Galaxy A and M series — its budget and midrange lines — to offset component costs. This will affect not only flagship devices but also affordable ones, where memory represents a significant share of total production costs.

Xiaomi has already felt the impact: its new Redmi K90 series launched at 2,599 yuan (~$364) for the base model with 12 GB RAM + 256 GB storage — about 100 yuan more than its predecessor. Xiaomi president Lu Weibing admitted that “the rise in memory costs exceeded expectations and will continue to grow,” adding that the company temporarily discounted the most popular version by 300 yuan to ease consumer backlash.

Similarly, Oppo raised the price of its Find X9 by 200–300 yuan, Vivo X300 by 100–300 yuan, and Realme GT8 by 300–500 yuan. The iQOO 15 now costs 200 yuan more than its original base price.

Other players like MediaTek are also feeling the squeeze, as their smartphone chips are getting more expensive due to rising memory and 2-nanometer process costs. As a result, the entire smartphone market is heading toward 10–20% inflation, especially for models with large RAM capacities needed for AI-driven features such as Circle to Search and Magic Eraser.

Consequences for Consumers and the Market

The memory shortage is not just a 2025 problem. New chip fabrication plants take around 2.5 years to build, and AI demand shows no signs of slowing. Analysts at Counterpoint Research warn that even after supply stabilizes in 2026, prices will remain elevated due to increased power consumption and manufacturing complexity.

For consumers, this means that flagships like the Galaxy S26 or Xiaomi 15 could cost $100–200 more, while budget models may rise by $20–50.

Manufacturers are trying to soften the blow: Samsung is expanding its advanced DRAM production line, but the benefits won’t materialize for at least a year. Meanwhile, panic buying from cloud providers like CoreWeave is worsening the chaos — even Samsung’s V9 NAND supply for 2026 is reportedly almost sold out.

In Short…

The AI boom is causing a global shortage of DRAM and NAND, as production shifts toward HBM for AI servers. Memory chip prices are up 15–30% by late 2025, and major smartphone brands — including Samsung, Xiaomi, and Oppo — are already raising device prices by $50–200. The shortage will likely persist for several years, but consumers can still save by buying current models or older devices before the 2026 price surge hits.