Electronic Pricing Pressures Will Last Beyond 2026

In 2026, the electronic memory market is experiencing what analysts call a "supercycle" or "scarcity regime". IDC, a normally softspoken source, refers to the current scenario as a crisis in a recent headline.

Unprecedented price surges of 100% to 500% for certain components are driven primarily by a structural shift where manufacturing capacity is being diverted to High-Bandwidth Memory (HBM) for AI infrastructure.  

Unprecedent Volatility 

Language on order acknowledgements for affected component on accepted purchase orders often include language similar to this: Pricing is not guaranteed when the P.O. is received; pricing is confirmed when allocation is granted.

This is a new and concerning approach - and a direct result of the wild fluctuation of prices further down the supply chain, all the way to raw materials. This increases the timing pressure and the need to respond quickly to protect product flow and pricing. 

Key Pricing & Supply Pressures

• AI "Capacity Siphoning"
  Major manufacturers (Samsung, SK Hynix, Micron) are prioritizing HBM for AI accelerators, which consumes 3x the wafer capacity of standard DRAM. In January of 2026, Reuters highlighted this as the primary factor: "AI infrastructure demand drives memory chip price surge".

• Contract Price Surges
  Conventional DRAM contract prices are forecast to jump 55–60% in Q1 2026 alone. This will affect a large swath of tech products in both the consumer space and the B2B arena.

• NAND Flash Volatility
  SSD storage prices have seen "brutal" increases, with some major vendors reporting NAND wafer prices up 246% compared to early 2025.
  

• Inventory Depletion
  SK Hynix has reportedly sold out its entire 2026 capacity for HBM and DRAM.

Consumer Device Impact 

Outlook for 2026–2027

• Continued Scarcity
  Market intelligence suggests pricing will remain elevated through most of 2026 and well into 2027. There will be a sustained disparity in supply versus demand, and in the case of electronics, demand can fluctuate very quickly, while adjusting supply takes a long time and significant investment. 

• Market Contraction
  IDC expects global PC shipments to decline by 4.9% to 8.9% as consumers face a "pay more or get less" reality. Costs will continue to rise for some time, according to Sourceability. 

• Delayed Relief
  Analysts do not expect significant relief until new fabrication plants reach volume production in late 2027 or 2028, and those dates can often slide significantly.

What should you do?

• Start the Discussion ASAP
  Make sure you discuss the current shortages and possible mitigations as soon as possible. This is not a simply solvable supply issue and may take much longer to resolve than what we're used to from past surges. These discussions should happen both internally and with outsourced suppliers.

• Order Inventory Early to Cover Demand
  Ensure stock on hand with known costs. This is the safest solution, but certainly has financial ramifications as well. If you are working with an outsourced manufacturing firm, work with them to accommodate coverage for additional supply of components sooner.
  

• Work Closely with Your Outsourcing Partners 
  Your partners have faced these issues before, and quite likely have some options to reign in the negative affects or al least minimize their impact. Understand that outsourced manufacturing partners have capabilities to help find creative ways to help manage pipelines and delivery dates, but they generally cannot absorb the pricing shocks at these unprecedented levels.
• For Identified Risk Parts, Issue FIRM POs - Now
  For many specific components, time is of the essence. Work quickly to identify where there is a need for a commitment that can assure movement toward getting inventory - before limits are placed or inventory runs out.

Whatever you decide on, understand that timing is critical - do it now.

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If you are a customer of GMI Solutions, you can be confident that we are reviewing risks and offer options for mitigating them wherever possible. Your components are managed by a team of experienced professionals with a number of specialized tools and processes at their disposal - please reach out with any questions.

Contact us today to learn how our expertise can safeguard your products and elevate your brand.