A $12 billion electronics retailer says price increases are coming due to the memory chip shortage - Business Insider

The CEO of Currys, the UK's largest electricals retailer, has warned that smartphone and laptop prices will rise later this year due to the growing demand for memory chips from AI data centers, which ... Read original →

The insatiable demand from AI data centers for high-bandwidth memory is triggering a 'memory squeeze' in consumer electronics. Technically, DRAM and NAND fabs can’t rapidly reallocate capacity, forcing smartphone and PC makers to cede priority to AI-customized orders. This structural shift inflates BOM costs and exposes systemic fragility in global allocation—especially as TSMC and Samsung lock over 70% of advanced packaging capacity to hyperscalers like Meta and Amazon. Regulatory efforts in the U.S. and EU to reshore chip production haven’t eased near-term shortages; instead, capital misallocation has worsened mid-tier supply gaps. Strategically, Best Buy may pivot toward services while Taiwanese and Korean module makers scramble for long-term supply deals. Over the next 18 months, consumer device inflation will persist, accelerating market consolidation favoring vertically integrated giants over weaker brands lacking chip leverage.