LED TVs to cost more as flash memory prices surge
OEMs say that the shortage will persist for a year or so. Experts have pointed out that companies will have to schedule ordering to streamline inventory
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RAJU V
LED televisions are likely to become more expensive due to a shortage of flash memory, which has resulted in a huge spike in prices. Companies have pointed out that with huge demand, the prices of flash memory have increased by more than 50 per cent in the last three months.
Television makers say that manufacturers do not have the capacity to manufacture DDR3 and DDR4. According to experts, chip manufacturers have shifted their focus to cater to the rising demand for higher margin AI data centres, resulting in a shortage of production of memory sets required for consumer electronic devices.
In some instances, memory manufacturers have shifted their entire manufacturing line to cater to AI data centres.
Companies are still evaluating the exact quantum of increase in television prices.
“The primary reason is that in AI datasets, the memory chipsets that are used are DDR6 and 7. The demand is huge, and the chipset makers are not able to fulfil the demand. Eventually, DDR3 and DDR4 have also been taken up for AI. Therefore, the shortage and the prices have witnessed a significant increase in the last three months. Prices have increased by more than 50 per cent. This is the biggest problem after the shortage of chipsets in 2021-2022. LED television prices will increase soon,” Avneet Singh Marwah, CEO SPPL, Exclusive brand licensee of THOMSON in India, told businessline.
Flash memory is mainly imported from China and is used in almost all electronic products, including televisions, mobiles, laptops, flash drives and USB devices.
According to media reports from China, memory manufacturers have indicated a severe capacity crunch as global manufacturers rush to secure memory sets for 2026 that could result in supply chain disruptions. Reports suggest that the changes in the memory industry that could lead to a shortage are triggered by the growth of Artificial Intelligence (AI).
“Over the past two weeks alone, flash memory prices have surged. For reference, the price of 1G/8 GB memory was around $2.61 in April and has jumped to $14.40 in October. Such a steep escalation has significantly impacted manufacturers’ input costs, prompting them to reassess sourcing strategies, renegotiate supplier contracts, and optimise inventory planning to manage costs without compromising on product quality or affordability. The primary reason for this supply cut is that suppliers have redirected memory to AI data centres, which offer better profitability, thereby limiting supply for other electronic products. Given the constrained availability, a temporary uptick in LED television prices is expected until flash memory supply stabilises in the coming months,” said Arjun Bajaj, Director of Videotex.
Lasting Impact
Original Equipment Manufacturers (OEMs) say that the shortage will persist for a year or so. Experts have pointed out that companies will have to schedule ordering to streamline inventory.
“We are continuously seeing the prices increase month on month. The present situation is extremely difficult and out of the control of every brand. The impact of repercussion will last for a period of six months to one year,” added Avneet Singh Marwah.
Published on November 5, 2025
