Global chip crisis resurges amid AI boom: Smartphone and computer prices expected to rise

KUALA LUMPUR, El Sky News – The global electronics industry is once again facing a serious threat of semiconductor supply shortages following a sudden surge in demand for Artificial Intelligence (AI) technology, which currently dominates the global market.

This situation has sparked concerns among industry analysts in Malaysia regarding the potential for price adjustments for consumer electronic devices, such as smartphones, laptops, and smart appliances, in the near future.

The “AI Boom” phenomenon has forced major chip manufacturers to shift their production focus toward graphics processing units (GPUs) and high-performance processors to meet the needs of data centers and AI servers, which are significantly more profitable.

“When production capacity is prioritized for the AI sector, the supply chain for consumer-grade chips becomes constrained. It’s simple economics—when supply decreases and demand remains high, component prices will soar,” explained a local tech market analyst.

In addition to supply factors, the integration of on-device AI functions—a major trend among manufacturers in 2025—has also contributed to rising production costs. More complex and expensive chips are required to run AI tasks locally without relying entirely on the cloud.

The impact of this crisis is expected to be felt by Malaysian consumers ahead of the launch of flagship models next year. Several major brands are reportedly considering increasing retail prices to offset the rising costs of raw materials and logistics.

However, the mid-range device sector may adopt a strategy of scaling back other specifications to maintain competitive pricing in the market.

For consumers in Malaysia, this development serves as a clear signal to be more cautious when planning device upgrades. Analysts advise the public to monitor the market and not be surprised if the price tags for their desired gadgets display higher figures compared to previous generations.

Whether this crisis will be prolonged or temporary, the reality is that the electronics ecosystem is currently undergoing a price transformation phase driven by the inevitable evolution of AI.

(Leakim Otid)