Mobile DRAM prices to skyrocket up to 83% in Q2 2026

2026-05-29 · Source: Dataconomy · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Cloud Computing & IT Infrastructure · Depth: Fundamental Awareness, quick

Summary

Contract prices for mobile DRAM, specifically LPDDR4X and LPDDR5X modules, are projected to increase by 70-75% and 78-83% respectively in Q2 2026, according to TrendForce. This surge, driven by high demand from AI data centers consuming 70% of high-end DRAM production by 2026, exacerbates a cost crisis. Major producers like Samsung, SK Hynix, and Micron, controlling 90% of global DRAM, are prioritizing high-bandwidth memory for servers. Consequently, smartphone manufacturers, including Xiaomi, OPPO, and Vivo, have reduced 2026 shipment forecasts, with global smartphone shipments expected to decline by 12.9% to 1.12 billion units. Memory costs now constitute 30-40% of a smartphone's bill of materials, up from 10-15%. Supply improvements are not anticipated until 2028.

Key takeaway

For smartphone manufacturers and supply chain strategists navigating rising component costs, you must immediately adjust your 2026 production forecasts and re-evaluate your bill of materials. Mobile DRAM prices are set to skyrocket by up to 83% due to AI data center demand, making memory 30-40% of device costs. Proactively secure long-term supply agreements and explore alternative memory solutions to mitigate significant profitability risks through 2027.

Key insights

AI data center demand for DRAM is causing a severe supply shortage and price hikes for mobile DRAM, impacting smartphone production.

Principles

• AI demand dictates high-end memory allocation.
• Memory availability constrains AI server shipments.
• Long lead times delay new fabrication capacity.

In practice

• Shift production focus to high-margin memory.
• Reduce smartphone shipment forecasts.
• Re-evaluate smartphone bill of materials.

Topics

• Mobile DRAM
• LPDDR5X
• AI Data Centers
• Memory Supply Chain
• Smartphone Market
• Component Pricing

Best for: Entrepreneur, Investor, Executive, Tech Journalist

Related on AIssential

• BT warns of smartphone price rises due to chip shortages from AI boom — The AI boom's insatiable demand for memory chips is driving electronics price increases and supply chain pressures across multiple sectors.
• Discipline Will Keep Memory Market Tight — Memory manufacturers are intentionally limiting DRAM supply to prevent a future bust, despite surging AI-driven demand.
• Samsung says the RAM shortage could get even worse next year — AI data center demand is intensifying a global RAM shortage, driving up prices and extending supply shortfalls.
• BREAKING: Samsung Hits $1 Trillion After BREAKING Big Tech Profit Records — AI-driven demand for memory chips is reshaping the semiconductor industry and driving record profits for key players.
• Automakers Face Memory Shock as AI Uses Up Semiconductor Supply — AI infrastructure's demand for HBM is causing a severe, structural memory shortage for the automotive industry.
• Report: Samsung execs worried company could lose money on smartphones for the first time — Soaring memory costs driven by AI demand threaten smartphone profitability and increase device prices.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by Dataconomy.