"Chairman Chey Tae-won's Warning Comes True"... Laptop Prices Already Up 1 Million Won, Will They Rise Even More?

DRAM Supply Expected to Meet Only 60% of Demand Through Next Year
AI-Driven Demand Concentration Deepens Consumer Memory Shortage

The so-called "chipflation" (chip + inflation), caused by an imbalance in the supply and demand of memory semiconductors, is solidifying as a structural trend rather than a short-term variable. As the semiconductor supply chain is being reorganized due to surging demand for artificial intelligence (AI), prices of major IT devices such as PCs, smartphones, and gaming consoles are rising in succession, rapidly increasing the burden on consumers.

On the 3rd of last month, Seonin Shopping Center, Yongsan-gu, Seoul. Photo by Eunseo Lee

According to foreign media outlets including Nikkei Asia on April 22, despite global memory chip manufacturers ramping up DRAM production, it is projected that only about 60% of market demand will be met by the end of 2027. This suggests that the supply-demand imbalance could persist for at least several years.

Major companies such as Samsung Electronics, SK hynix, and Micron are rushing to invest in facilities and expand production lines. However, due to the characteristics of semiconductor manufacturing processes, it takes considerable time for new plants to enter a stable mass production system. The industry expects that the effects of expanded supply will begin to materialize in 2027 at the earliest, or after 2028 at the latest.

Previously, SK Group Chairman Chey Tae-won also mentioned at NVIDIA’s annual developer conference (GTC) in March that the shortage of semiconductor wafers is likely to continue until 2030.

Demand Outpaces Supply...Sharp Price Increases

The issue is that the pace of demand growth is greatly outstripping supply. The market believes that, to achieve a supply-demand balance, DRAM production must increase by more than 12% annually over the next two years. However, the actual supply growth rate is estimated to remain in the 7% range.

A laptop displayed at a supermarket in Seoul. Photo by Yonhap News.

This structural gap is directly translating into upward price pressure. In the first quarter of this year alone, DRAM prices surged by more than 50%, while NAND flash prices soared by over 90%. In the second quarter, further increases of up to around 90% are also expected for both.

AI-Driven Demand Shift...Focus on High-Performance Memory

The prolonged chipflation is being driven by changes in the structure of semiconductor demand. With the spread of AI servers, demand for high-bandwidth memory (HBM) and high-capacity products has surged, leading major manufacturers to focus on producing high-performance products with greater profitability.

Consequently, the supply of more general-purpose DRAM and NAND flash has been relegated to a lower priority, resulting in an even tighter supply of consumer memory products.

Laptop Prices Jump by 1 Million Won...Consumers Stagger Under Chipflation

The sharp rise in memory prices is rapidly being passed on to finished product prices. Samsung Electronics and LG Electronics recently increased laptop prices by up to 900,000 to 1 million won compared to previous models. The price of LG Electronics’ “Gram” series jumped by nearly 1 million won within a year, while Samsung Electronics’ “Galaxy Book” series also saw increases ranging from several hundred thousand won to as much as 900,000 won depending on the model.

Smartphones are no exception. The launch price of the "Galaxy S26" series rose by up to 295,900 won compared to its predecessor, with the highest-end model surpassing 2.5 million won. Prices of foldable phones and existing flagship models have also been raised in succession.

On February 20th, an advertising flyer announcing the Samsung Electronics new product Galaxy S26 Unpacked event was posted in front of the mobile phone store on the 10th floor of Technomart in Sindorim, Guro-gu, Seoul. Photo by Lee Eunseo

Console gaming devices have also joined the price hike trend. Sony raised the price of the PlayStation 5 (PS5) by about 100 dollars, and a price adjustment is expected for the domestic market as well. Overseas PC manufacturers such as ASUS, HP, and Dell have either already increased prices or announced plans to do so.

Industry sources suggest there is a possibility that PC prices could rise by an additional 20% or more by the end of the year. As long as the changes in the semiconductor supply structure persist, there is growing consensus that chipflation will be difficult to resolve in the short term.

This content was produced with the assistance of AI translation services.