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The TV market is beginning 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 primarily smaller and budget TVs.
Memory and processors are getting much more expensive
As late as the second quarter of 2025, the board with the processor accounted for just over 10% of a TV's component cost. In the third quarter of 2026 its share was expected to rise to as much as 45 to 50%. One reason is the sharp rise in memory prices. According to Omdia data, 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 compared with the previous year. Much of the demand now comes from data centers 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 around 40 inches. In more expensive OLEDs or large TVs, the panel still accounts for a much larger share of the device’s total cost. The problem is especially significant for manufacturers, because budget TVs are already sold with slim margins. If component prices keep rising, companies may face a choice: raise the prices of finished products or lower their specifications, for example by using less memory or cheaper chipsets. TechRadar notes that a similar trend has already been seen in the smartphone market. Forecasts indicate pressure on the semiconductor market could continue into 2027. That does not mean all TVs will suddenly become more expensive, but especially in the cheapest segment manufacturers will have increasingly less room to cut margins.
Sources: Omdia via Digitimes, TechRadar
