Memory Shortage Drives Up Device Prices as DRAM Costs Surge and Chinese Fabs Expand

The global memory shortage, driven by AI infrastructure's insatiable demand for DRAM and high-bandwidth memory, is now hitting consumer electronics hard. Roku raised prices on its entire US streaming device lineup by up to 60 percent, and Google confirmed that its upcoming Pixel 11 phones will cost more due to surging RAM costs.

Roku's Streaming Stick 4K saw the steepest jump, rising from $49.99 to $79.99, a 60 percent increase. Other devices in the lineup saw increases of $10 to $50. Google's vice president Shakil Barkat told 9to5Google that RAM costs have surged sixfold, forcing the company to pass on the expense and rework Android to use less memory.

Chinese DRAM production ramps up but prices stay high

China's largest DRAM maker, CXMT, is running close to 265,000 wafer starts per month as of mid-2026, according to analyst estimates, and is projected to hit 350,000 by year's end. That would bring it within striking distance of Micron's estimated 385,000 wafer starts. Despite this capacity expansion, retail listings show that CXMT-based memory modules are priced similarly to those from the big three manufacturers Samsung, SK Hynix, and Micron, contradicting expectations that Chinese DRAM would be cheaper.

• Roku's price increases range from $10 to $50 across its streaming hardware lineup.
• Google confirmed Pixel 11 prices will rise due to a sixfold increase in RAM costs.
• CXMT's wafer starts are projected to reach 350,000 per month by end of 2026.
• Huawei is reportedly partnering with SwaySure and the Chinese government to build a 12-inch DRAM fab in Shenzhen.
• The new fab is expected to produce 140,000 wafers per month, primarily for Huawei's own AI accelerators.

Huawei's DRAM fab rumor signals a shift in memory supply

According to semiconductor analysts on X, Huawei has partnered with DRAM maker SwaySure and the Chinese government to set up a 12-inch memory production plant in Shenzhen. SwaySure, registered in March 2022 and backed by municipal government, appears alongside Huawei on the US Commerce Department's Entity List. The rumored fab would produce 140,000 wafers per month, but analysts believe the output is intended for Huawei's Ascend AI accelerators, which require high-bandwidth memory (HBM) that US export controls have cut off from Chinese entities. This development does not appear to be an isolated incident, as CXMT is also expanding rapidly, challenging the oligopoly of Samsung, SK Hynix, and Micron for the first time in decades.

What comes next is uncertain. Most of China's new DRAM capacity is expected to be absorbed by domestic demand, not exported to relieve global shortages. Consumer device prices may continue to rise as the memory shortage persists. However, if Huawei's fab and CXMT's expansion succeed, they could eventually disrupt the pricing discipline of the big three, offering relief to consumers in the long term. For now, the memory shortage shows no signs of easing.