Omdia reports AI chip shortages inflate TV component costs

Semiconductor shortages driven by artificial intelligence demand are inflating television manufacturing costs, causing processing boards to rival panel expenses for small screens, according to reports. Global demand for processors and memory has triggered a component crisis expected to persist through 2027 and beyond.

Semiconductor Costs Surpass Panel Prices

Market research firm Omdia reported that rising semiconductor expenses have altered traditional television production economics. Processing boards that accounted for just over 10 percent of manufacturing costs in the second quarter of 2025 now make up 45 to 50 percent of total costs as of the third quarter of 2026. Basic DRAM prices reached $25 in August 2026, marking a 4.4-fold increase compared to the previous year. Meanwhile, NAND flash memory costs climbed to $30.50, representing a nearly ninefold increase over the same period.

Wi-Fi module pricing experienced even sharper increases, jumping from $33.90 in 2025 to $118.20. That price makes an individual Wi-Fi chip more expensive than the lowest-cost 55-inch 4K panel, which is priced at $116, and comparable to the average 4K panel price of $123. According to Omdia’s figures, the costs are rocketing rather than just shifting by a couple of cents here or there.

Market Impact on Budget Televisions

The price surge currently concentrates its pressure on the lower end of the consumer market. Affected hardware includes 32-inch liquid-crystal displays and Full HD models measuring in the low 40-inch range, rather than premium OLED alternatives. Manufacturers operating within low-margin sectors face severe profitability squeezes as component prices continue upward.

Analysts indicate that component expenses cannot be absorbed indefinitely by manufacturers. Industry observers expect the television market to mirror trends seen in the smartphone sector, resulting in higher retail prices alongside reduced hardware specifications for consumers.

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