Developments in the world of technology are bringing about a significant change in television production processes. In particular, the increasing demand focused on artificial intelligence is leading to a global semiconductor shortage, while the increase in television chip costs is putting manufacturers in a difficult position.

According to data shared by the market research company Omdia, the most valuable component of televisions is no longer the screen panels, but the processors that run the device. This situation points to an unprecedented cost imbalance in the sector.

Artificial Intelligence Demand Changes Production Costs

The intense interest in artificial intelligence technologies is restricting the supply of critical components such as memory and processors. This is causing component costs in the television market to rise rapidly. According to Omdia data, the share of processor boards in total cost was around 10 percent in the second quarter of 2025, while this rate reached 45-50 percent in the third quarter of 2026.

In particular, basic DRAM prices rose to $25 in August of this year, showing a 4.4-fold increase compared to a year ago. NAND flash memory unit prices, on the other hand, increased by approximately nine times compared to last year, reaching $30.50. These increases directly affect products in the lower segment of the market, especially 32-inch LCD televisions and entry-level Full HD models.

The price change in Wi-Fi modules reveals the severity of the situation. Wi-Fi module prices, which were $33.90 in 2025, have risen to $118.20 today. This figure represents a higher cost than the most affordable 55-inch 4K panel at $116. With component costs approaching the average price of a 4K panel at $123, this significantly puts pressure on manufacturers’ profit margins.

Price Increases May Continue Until 2027

The component crisis is expected to continue into 2027 and beyond. Television manufacturers, who already operate with low profit margins, appear unlikely to be able to absorb these increasing costs internally for a long time. Experts predict that a scenario previously observed in the smartphone market may also occur in the television sector.

According to this scenario, consumers may encounter television models with higher price tags but lower technical specifications in the future. Manufacturers restricting hardware specifications to balance costs could also change the competitive dynamics in the sector. While high-end OLED televisions are currently less affected by this situation, the general upward trend in component costs paints a worrying picture for the entire market.

What are your thoughts on how these cost increases in the technology world are reflected in television prices?