AI-fueled chip shortage is driving up smartphone prices
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AI-fueled chip shortage is driving up smartphone prices
""The AI boom, along with the massive investments in infrastructure and data centers that come with it, is having a noticeable impact on the memory chip market," Wolfgang Weber, CEO of the German Electro and Digital Industry Association (ZVEI), told DW. "According to analyses by the World Semiconductor Trade Statistics (WSTS) institute, prices for these chips rose by 50% last year," Weber said. As a result, consumers may face not only longer delivery times but also higher prices for electronic and digital devices."
""Bottlenecks in such key technologies pose a serious problem for our economy," the association's head warned. "The chip shortage alone between 2021 and 2023 caused more than 102 billion ($121 billion) in economic damage in Germany." Boom in the semiconductor market The latest figures from WSTS underscore the industry's rapid growth (see chart). In the first half of 2025, the global semiconductor market reached $346 billion (293 billion) an increase of 18.9% compared with the previous year."
Surging AI demand and heavy investments in infrastructure and data centers are driving up memory chip prices and straining supply. WSTS analyses show memory chip prices rose by 50% last year. Consumers can expect longer delivery times and higher prices for smartphones and computers. The chip shortage between 2021 and 2023 caused more than 102 billion euros ($121 billion) in economic damage in Germany. The global semiconductor market reached $346 billion in the first half of 2025, with WSTS forecasting growth to $772 billion in 2025 and $975 billion in 2026. IDC projects average smartphone selling prices could rise between 3% and 8% depending on scenarios.
Read at www.dw.com
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