The AI boom could make TVs more expensive
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Illustration: Maura Kearns/Axios
AI's rise could soon make new TVs harder to find — or more expensive.
Why it matters: The AI boom is making RAM and memory chips pricier and less available. While often tied to PCs and gaming consoles, the squeeze could also delay or raise the cost of many consumer products like televisions.
Driving the news: Pua Khein-Seng, CEO of Phison, a major producer of components found inside popular consumer devices, suggested in a recent interview that constrained memory supply is leading to delays and shortages for modern consumer devices, like TVs, and production might be disrupted this year.
- Samsung said in January that it was not ruling out price hikes on new TVs and home appliances because of memory chip shortages.
- Industry analysis firm TrendForce also said in January that price increases for TVs are "unavoidable" and that shipments are expected to decline by more than 190 million units in 2026.
How it works: Modern smart TVs typically include 1GB-8GB of RAM, depending on the model and software it uses.
- This isn't a lot (computers use around 16GB for general use), but it's necessary. The memory chips help TVs run apps, like Hulu or Netflix, buffer video and process data.
- They also help run operating systems, like the Roku software that is natively installed on some TVs.
- Memory might not seem super crucial for TVs, but chips didn't seem super necessary for cars until a global shortage upended the auto market in 2021.
The big picture: AI companies like Nvidia, Microsoft and Google are absorbing memory supply at record speeds — and are likely to do so for years as they race to monetize their infrastructure investments.
- "When memory tightens, prices rise, product launches shift ... margins compress and smaller companies struggle more than large tech giants," Marco Mezger, executive vice president of memory tech company Neumonda tells Axios.
- "This doesn't mean shelves go empty tomorrow," he says. But, "if AI demand continues at current velocity, we could see broader consumer impact within the next six to 12 months."
What we're watching: Prices.
- According to a TrendForce analysis, rising prices for memory, precious metals and panels are leading to higher production costs for TVs. The firm predicts it's "increasingly likely" retail prices for new TV models will jump this year.
- "It is highly likely prices will continue to rise in the short term across the industry," Pua says.
Reality check: Americans usually take it in stride when major consumer goods are unavailable — or available only at significantly higher prices.
- This was the case in the pandemic. TVs were in short supply because of a chip shortage, but sales still skyrocketed.
- During the Great Recession, TV sales dipped slightly at the onset of the financial crisis in 2008 before rebounding quickly the following year.
- Experts suggested at the time that Americans eventually leaned into at-home entertainment, like TVs, because they didn't have the money for travel or more expensive activities.
The bottom line: AI-driven demand is reshaping the memory market — and that may lead to changes to consumer electronics, too.
