The so-called "chipflation" (chip + inflation), triggered by the supply-demand imbalance in the memory semiconductor market, is solidifying into a structural trend rather than a short-term variable. With surging demand for artificial intelligence (AI) prompting a reorganization of semiconductor supply chains, prices of major IT devices such as PCs, smartphones, and gaming consoles are rising in succession, rapidly increasing the burden on consumers.

Taewon Chey, Chairman of SK Group, is answering reporters' questions at the NVIDIA Annual Developer Conference 'GTC 2026' exhibition held on March 16 (local time) at the San Jose Convention Center in California, USA. Photo by Yonhap News

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According to foreign media including Nikkei Asia on April 22, even though global memory manufacturers are expanding DRAM production, they are projected to meet only about 60% of market demand by the end of 2027. This suggests the imbalance between supply and demand could persist for at least several more years.

Leading companies such as Samsung Electronics, SK hynix, and Micron are expediting facility investments and production line expansions, but due to the nature of semiconductor processing, it takes a significant amount of time for new plants to reach stable mass production. The industry anticipates that the effects of expanded supply will only become pronounced as early as 2027 or, at the latest, after 2028.

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

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

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The issue is that demand is increasing much faster than supply. Market analysts believe DRAM production needs to increase by more than 12% annually over the next two years to balance supply and demand, but the actual growth rate of supply is estimated to remain in the 7% range.

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

The prolonged chipflation trend is rooted in changes to the semiconductor demand structure. The spread of AI servers has led to a sharp increase in demand for high-bandwidth memory (HBM) and high-capacity products, prompting major manufacturers to focus on producing high-performance products with higher profitability.

In the process, the supply of more general-purpose DRAM and NAND flash has been pushed to a lower priority, creating a structure where consumer memory supply is becoming even tighter.

Samsung Electronics announced on the 22nd that it will participate in the "2026 World IT Show" held at COEX in Gangnam-gu, Seoul, until the 24th. The photo shows visitors experiencing the Galaxy S26 Ultra's horizontal fixed Super Steady feature and 200-megapixel camera at the Samsung Electronics pavilion of the 2026 World IT Show. Photo by Yonhap News Agency

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The sharp increase in memory prices is quickly being reflected in finished product prices. Recently, Samsung Electronics and LG Electronics raised laptop prices by up to 900,000 to 1 million won compared to previous models. LG Electronics' "Gram" series jumped by nearly 1 million won in a year, and 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-spec model surpassing 2.5 million won. Prices for foldable phones and existing flagship models have also increased across the board.

Console gaming devices have joined the price increase trend as well. Sony raised the PlayStation 5 (PS5) price by about 100 dollars, and a price adjustment is expected in the Korean market. Overseas PC makers such as ASUS, HP, and Dell have either announced or already implemented price increases.

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