Electronics prices soar as AI boom drives up demand for memory chips

Surging demand for AI infrastructure is driving up memory chip prices, raising costs for consumer electronics in Estonia. A 64GB DDR5 module now costs up to €1,500, triple last year's price, and Apple has raised MacBook and iPad prices by 20%. Industry experts warn that supply constraints will persist as new chip factories take years to build.

Electronics prices soar as AI boom drives up demand for memory chips Surging demand for artificial intelligence infrastructure is driving up memory chip prices, raising the cost of consumer electronics in Estonia. The rapid expansion of AI data centers is straining global memory chip supplies, driving up prices for laptops, tablets and other consumer electronics as technology companies compete for limited production capacity. One example is a 64GB DDR5 memory module, which now costs up to €1,500 — roughly three times as much as a year ago. "Prices have risen sharply," said Tõnis Lind, business development and communications manager at Arvutitark. He said distributors are reducing inventory purchases and relying on existing stock because replacement products have become much more expensive. The trend extends well beyond gaming PCs, as memory chips are used in nearly all modern electronic devices. Apple recently raised prices for some MacBooks and iPads by about 20 percent as manufacturers face higher component costs. Asko Pukk, head of device sales at Telia, said the industry faces a supply bottleneck because a small number of manufacturers dominate chip production. "About 70 percent of the chips produced worldwide now go to AI data centers," Pukk said. "It's simply a production capacity issue." Supply slow to catch up to demand Supply is unlikely to catch up quickly either, as building new memory chip factories takes years. "History has shown the market rises when you least expect it, and faster than expected," said Hanno Septer, a supply chain expert at the Estonian Electronics Industries Association EETL . "Major investments are coming next year, but until then, the industry has to cope with limited capacity," he added. The higher prices are already affecting consumer spending. Lind said shoppers are becoming more cautious and delaying nonessential purchases, while Pukk said Telia has already seen a decline in unit sales. "Time will tell," Pukk said about the potential longer-term impacts. -- Editor: Johanna Alvin, Aili Vahtla