TV chip costs overtake panels in some models as memory prices soar

Rising semiconductor prices are reshaping costs for some televisions, with chips potentially overtaking the display panel as the most expensive component. The trend is currently concentrated in lower-priced sets, according to market research firm Omdia, as reported by DigiTimes and TechRadar.

Omdia figures cited in the report put the processing board at just over 10% of total TV cost in the second quarter of 2025. By the third quarter of 2026, its share is projected to reach 45% or even 50%.

Component prices have climbed sharply. Basic DRAM reached $25 in August, 4.4 times its price a year earlier, while NAND flash memory rose to $30.50, nearly nine times the year-ago price. Wi-Fi modules reportedly increased from $33.90 in 2025 to $118.20. That is above the $116 price of the lowest-cost 55-inch 4K panel and close to the $123 average 4K panel price.

The report says the cost pressure is expected to continue through 2027 and beyond, squeezing manufacturers’ margins. It says higher prices and lower specifications could follow, as manufacturers are unlikely to absorb rising costs indefinitely. The source describes the pressure as part of an AI-driven semiconductor supply crunch.