Memory chip prices are surging worldwide, driving up costs for smartphones, computers and game consoles. This increase stems from declining supply as manufacturers prioritize advanced chips for artificial intelligence instead. Consequently, companies across multiple industries now face significant pressure on their profit margins.
Sharp Corp. executive Shigeru Kobayashi acknowledged this challenge during a briefing session on June 9. He explained that the company plans shifting toward higher-value products to protect profitability. Specifically, Sharp expects operating profit for its device business to fall 30 percent this fiscal year.
Similarly, Canon Inc. anticipates its consolidated operating profit will decrease by fifty billion yen this year. Therefore, Canon plans passing these increased costs onto consumers through higher camera and printer prices. Both companies illustrate how widespread this memory chip shortage has become across industries.
According to research firm TrendForce, NAND flash memory prices more than doubled between late 2025 and early 2026. Meanwhile, DRAM prices soared by 82.7 percent during that same period, according to the firm. This dramatic increase reflects surging demand for advanced chips within AI data centers globally.
These advanced chips offer faster processing speeds and larger storage capacities than general-purpose alternatives. Consequently, manufacturers now prioritize expanding production capacity for these more profitable advanced components instead. Kioxia Holdings plans annual capital investments of roughly 470 billion yen through fiscal 2028.
Additionally, Samsung Electronics and SK Hynix have announced similar substantial investment plans recently. Meanwhile, global smartphone shipments fell 2.9 percent during early 2026, marking the first decline in years. Chinese manufacturers, particularly reliant on budget smartphones, felt this impact most significantly.
Kioxia executive Junichiro Yaguchi warned that tight supply conditions will likely persist until 2027. Furthermore, analyst Yoshio Tamura predicted that end-product prices will continue rising throughout the coming year. Ultimately, this ongoing memory chip shortage will keep reshaping pricing strategies across multiple technology sectors.
