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The TV market is starting to feel the effects of rising demand for memory and semiconductors. According to Omdia data cited by TechRadar, in some cheaper models the electronics already account for a larger share of the cost than the LCD panel itself. The problem currently affects mainly smaller and budget TVs.
Memory and processors are becoming much more expensive
As recently as the second quarter of 2025, the board with the processor accounted for just over 10% of a TV's component cost. By the third quarter of 2026 its share was expected to rise to as much as 45–50%. One reason is the sharp rise in memory prices. According to Omdia, basic DRAM cost about $25 in August, or 4.4 times more than a year earlier. NAND flash rose to $30.50, nearly nine times the previous year. A large part of demand now comes from data centres and AI infrastructure. Memory and semiconductor manufacturers are directing an increasing share of production capacity to the more profitable server segment, which limits the availability of components for consumer electronics.
Cheap TVs are most at risk
So far the greatest pressure is on 32-inch LCD TVs and cheaper Full HD models with a diagonal of around 40 inches. In more expensive OLEDs and large TVs the panel still accounts for a much larger share of the device's total cost. For manufacturers this is particularly significant, as budget TVs are already being sold on thin margins. If component prices continue to rise, firms may face a choice: raise the prices of finished devices or lower their specifications, for example by using less memory or cheaper chipsets. TechRadar points out that a similar trend has already been seen in the smartphone market. According to forecasts, pressure on the semiconductor market may persist into 2027. This does not mean that all TVs will suddenly become more expensive, but particularly in the lowest-priced segment manufacturers will have less and less room to further cut margins.
Sources: Omdia via Digitimes, TechRadar
