Smartphone Makers Squeezed by Soaring Chip Costs

Smartphone manufacturers are facing unprecedented cost pressures amid global semiconductor supply-demand imbalances. According to Counterpoint Research, average selling prices (ASPs) for DRAM and NAND... Read original →

The semiconductor supply chain is undergoing a fundamental shift, with AI-driven chip demand driving up DRAM and NAND prices, pressuring smartphone manufacturers. TSMC’s 2nm process cost increases have eroded Apple’s historical buying power, while AI chipmakers like NVIDIA continue to extract value through premium pricing. Memory producers such as Samsung and Micron benefit from the price surge, but mid-tier brands like Xiaomi are increasingly vulnerable. Geopolitical dynamics, particularly involving Taiwan, China and South Korea, are intensifying supply chain risks. In the next 12–24 months, AI chip demand will dominate, sidelining traditional smartphone SoCs. Only vertically integrated players will retain market resilience.