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"When demand falls, prices are supposed to follow suit. That’s just how markets work. Right now, demand for consumer electronics is in the toilet. So why do prices keep rising?
The memory in your next phone costs 230% more than last year's model, despite smartphone sales falling. This can only mean something's broken in the supply chain… or someone's breaking it deliberately."
~ Coin Bureau
The global semiconductor industry is currently facing a unique and structural chip shortage driven primarily by the explosive demand for high-bandwidth memory used in artificial intelligence infrastructure. Unlike previous shortages caused by temporary supply chain issues, this bottleneck stems from the fact that advanced AI chips require significantly more manufacturing capacity and complex vertical stacking processes, which effectively cannibalizes the production of standard chips for smartphones and laptops. Major manufacturers like Samsung and Micron are reporting record-breaking profit margins and have already sold out their production capacity through 2026 to tech giants like Nvidia and Google, leading to a breakdown of long-term price agreements for consumer electronics. Consequently, consumers can expect higher prices or downgraded specifications for new devices, while corporate IT departments face a perfect storm of mandatory software upgrades and skyrocketing hardware costs.
0:00 Intro
0:51 Background
5:50 Cartel Margins
10:09 The Consumer Bill
13:43 The Microsoft Misery
16:44 Bottlenecks Galore
Source - Coin Bureau Finance: https://www.youtube.com/watch?v=vrDkNMlCSyM
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
