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

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

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

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According to international media outlets such as Nikkei Asia on April 22, despite global memory manufacturers ramping up DRAM production, they are expected to meet only about 60% of market demand by the end of 2027. This means the supply-demand imbalance could persist for at least several years.

Major companies like Samsung Electronics, SK hynix, and Micron are rushing to invest in facilities and expand production lines, but due to the nature of semiconductor manufacturing, it takes considerable time for new plants to reach stable mass production. The industry expects that the supply expansion effect will not become full-fledged until as early as 2027, or as late as after 2028.

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.

The issue is that the pace of demand growth is far outstripping supply. The market believes that to balance supply and demand, DRAM production must increase by more than 12% annually on average over the next two years, but the actual supply growth rate is estimated to remain around 7%.

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

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This structural gap is directly translating into upward price pressure. In fact, DRAM prices in the first quarter of this year jumped by more than 50%, and NAND flash by over 90%. In the second quarter, each is expected to rise by up to about 90% additionally.

The prolonged chipflation is rooted in changes to the semiconductor demand structure. The proliferation of AI servers is driving a surge in demand for high-bandwidth memory (HBM) and high-capacity products, prompting major players to concentrate on the production of high-performance products with higher profitability.

In this process, the supply of generic DRAM and NAND flash has become a lower priority, leading to an even tighter supply structure for consumer memory.

The rapid rise in memory prices is quickly being reflected in end-product prices. Recently, Samsung Electronics and LG Electronics raised laptop prices by up to 900,000 to 1 million won compared to previous models. The price of LG Electronics' "Gram" series surged by nearly 1 million won in the past year, and the Samsung Electronics "Galaxy Book" series also saw increases ranging from several hundred thousand won to up to 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, and the highest-spec model surpassed 2.5 million won. Prices for foldable phones and traditional flagship models have also been raised one after another.

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

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Console game devices have also joined the price hike trend. Sony increased the price of the PlayStation 5 (PS5) by about 100 dollars, and a price adjustment is also expected in the Korean market. Overseas PC manufacturers such as Asus, HP, and Dell have either announced or already implemented price increases.

Industry sources suggest that PC prices could rise by more than 20% additionally by the end of the year. As the shift in the semiconductor supply structure continues, there is mounting consensus that chipflation will not be resolved in the short term.

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