- The ongoing DRAM shortage will affect TVs too
- Expect cheaper TVs to get price hikes first
- There's no sign of the shortage ending any time soon
Samsung has indicated that it may have to raise prices on new TVs due to the persistent shortage of memory chips. In a statement to Reuters, co-CEO T M Roh remarked, "As this situation is unprecedented, no company is immune to its impact." He noted that the shortage is affecting a wide range of products, from mobile phones to home appliances.
As the leading TV manufacturer globally, Samsung possesses significant purchasing power that smaller competitors may lack. Like other major companies, such as Apple, it secures supply contracts months or even years in advance, making it less vulnerable to immediate supply chain disruptions.
However, Roh acknowledged that some price increases are "inevitable" as the shortage persists. If you're considering purchasing one of the best TVs, particularly in the entry-level or mid-range segments, it may be wise to act sooner rather than later.
What's causing the memory chip shortage?
As reported in December 2025, several factors are contributing to a severe memory chip shortage. The demand for DRAM chips has surged, particularly with the rise of AI technologies.
AI training requires substantial memory resources, and when high demand meets limited supply, prices tend to soar—similar to the spikes seen during the COVID-19 pandemic and the crypto mining boom. With significant investments flowing into AI, chip manufacturers are prioritizing production for AI data centers over consumer electronics.
According to IDC, major memory producers are shifting their focus from traditional DRAM and NAND used in smartphones and PCs to memory types suited for AI applications, such as high-bandwidth (HBM) and high-capacity DDR5. This shift has constrained the availability of general-purpose memory modules, driving up prices across the board.
IDC further explains that AI servers and enterprise systems require significantly more memory than consumer devices, pulling a disproportionate share of global capacity and creating shortages. This situation is not merely a cyclical issue but may represent a long-term strategic reallocation of silicon wafer capacity.
The impact on the smartphone market is expected to be significant in 2026 and beyond, as memory can account for up to 20% of the material cost of a mid-range phone and 10-15% for flagship models. Smartphone specifications are already regressing as a result.
While the effect on TVs may not be as severe as on PCs and smartphones—since they utilize less RAM and the cost of RAM is a smaller fraction of overall expenses—it still poses challenges. Profit margins in the TV industry are already razor-thin, leaving little room for price increases. This is especially true for budget models, where the first price hikes are likely to occur.
