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After memory, AI drives up chip costs: Will phones and laptops get pricier?

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After memory, AI drives up chip costs: Will phones and laptops get pricier?

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After memory, AI drives up chip costs: Will phones and laptops get pricier?

AI demand is driving up chip costs, with TSMC reportedly weighing a 20 per cent increase in advanced packaging prices. With memory already pushing up device prices, could devices get more expensive?

Rising semiconductor costs could add to price pressures for smartphones and laptops (AI-generated image)

Harsh Shivam New Delhi 5 min read Last Updated : Oct 28 2026 | 4:16 PM IST

A reported price increase of up to 20 per cent for Taiwan Semiconductor Manufacturing Company’s (TSMC) advanced chip packaging technology could add to the cost pressures facing the electronics industry. The development comes as AI data centres absorb more memory and semiconductor manufacturing capacity, prompting price increases that have already affected smartphones and laptops.

According to a report by Tom’s Hardware, citing TrendForce, TSMC is considering raising prices for its Chip-on-Wafer-on-Substrate (CoWoS) technology as demand for Nvidia ’s Blackwell and upcoming Rubin AI processors strains packaging capacity. TSMC has not confirmed the reported increase.

While the proposed revision primarily concerns advanced packaging used in AI processors, it raises questions about the wider impact of capacity constraints on consumer electronics manufacturers already dealing with higher memory costs. ALSO READ: Apple MacBook Pro with M6 launched in India: Check price, offers and specs

AI processors require high-bandwidth memory (HBM), which supplies data to processors at high speeds, alongside advanced packaging technology that integrates multiple components into a single package.


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