LPDDR5X prices set to surge as HBM booms
Memory chip prices will surge in the fourth quarter as demand for artificial intelligence strains production capacity, according to market research firm TrendForce. Contract prices for standard computer memory will climb between 18 percent and 23 percent, up from earlier projections of 8 percent to 13 percent growth.
Cloud computing companies are ordering more servers to support AI systems, which require high-bandwidth memory chips that consume 35 percent to 45 percent more manufacturing space than smartphone components. The shortage affects LPDDR5X memory used in mobile devices, forcing companies like Xiaomi to warn customers about rising costs.
Manufacturers will shift production priorities in 2026 as standard memory becomes more profitable than specialized AI chips. Server shipments will grow 4 percent next year while delivery times for computer memory stretch to 39 weeks.
Smartphone makers face margin pressure as Taiwan Semiconductor Manufacturing charges $30,000 per wafer for advanced chip production. Samsung considers raising device prices to offset higher component costs.
