The contract price of DRAM memory chips rose 58–63% in the second quarter of 2026, the steepest quarterly jump in a decade, according to Taipei-based TrendForce. A common DDR5 chip has quadrupled in price over the past year. The surge, driven by artificial intelligence data centres, is forcing consumer electronics companies to issue warnings. Sony told investors it will not absorb component cost increases for the next-generation PlayStation 6, signalling a likely retail price near $1,000 — almost double the launch price of the PlayStation 5. Microsoft has raised Xbox prices three times in 13 months, and Apple has added hundreds of dollars to Mac and iPad lines.

Behind the price spiral is a structural reallocation of manufacturing capacity. The three firms that control 95% of the global DRAM market — South Korea’s Samsung and SK Hynix, and US-based Micron — have shifted more than 80% of their advanced production lines to high-bandwidth memory (HBM) chips for AI servers, where margins are higher. This has squeezed supply of standard DRAM used in personal computers, smartphones and game consoles. Data centres now absorb roughly half of all DRAM output, up from a third five years ago. Analysts at TF International Securities project that a further 15–20% of memory capacity currently allocated to consumer electronics will migrate to data centres in 2027.

The squeeze is cascading into upstream components. Japan’s Murata Manufacturing will raise prices for multilayer ceramic capacitors by 10–40% from July. Power semiconductor suppliers including Germany’s Infineon and Texas Instruments have also pushed through increases. In the United States, a class-action lawsuit filed on 25 June accuses Samsung, Micron and SK Hynix of deliberately constraining standard DRAM output to inflate prices. The three firms faced similar antitrust investigations in the 2000s that ended in multi-billion-dollar fines. Consumer electronics makers face rising input costs and weakening demand: IDC forecasts global PC shipments will contract 11.3% in 2026, with a 20% year-on-year decline in the fourth quarter.

New fabrication plants are under construction — South Korea has unveiled a $520 billion national semiconductor plan, and Micron is investing $200 billion in US facilities — but meaningful new wafer capacity is not expected before mid-2027. Micron’s chief executive, Sanjay Mehrotra, told investors that supply will remain tight “beyond calendar 2027”. The next factual milestones are the quarterly earnings reports from the major memory suppliers, which will offer updated pricing guidance, and the progress of the antitrust suit in California, which could alter market dynamics if it advances.