HBM demand squeezes smartphone chip supply, hits MediaTek’s profits
Artificial intelligence systems require specialized memory chips that strain global semiconductor production and threaten smartphone costs. Memory manufacturers prioritize high-bandwidth products for AI applications, leaving standard phone components with delivery waits stretching into mid-2026.
MediaTek faces mounting pressure as memory shortages coincide with its shift to advanced two-nanometer manufacturing. Taiwan Semiconductor Manufacturing charges $30,000 per wafer for this technology, pushing the chip designer toward higher prices by late 2025. Qualcomm may fare better because its premium pricing offers more flexibility.
Memory production for AI consumes 35% to 45% more space than standard chips. Manufacturers ordered memory components face waits between 26 and 39 weeks. Xiaomi executives cited rising memory costs last week when explaining price increases for their Redmi phone series.
