Global investments in artificial intelligence infrastructure are creating a supply squeeze for memory and storage chips, impacting downstream industries including smartphone manufacturing. The surge in demand from AI data centers for high-bandwidth memory (HBM) and advanced NAND flash is diverting production capacity and driving up prices for standard components.
While specific, current price increases for individual manufacturers like Xiaomi are not publicly disclosed in quarterly reports, industry analysts confirm the broader trend. Market research firm TrendForce reported in March 2026 that contract prices for DRAM and NAND Flash continued to rise in the first quarter due to sustained procurement from AI server makers.
This market dynamic forces smartphone companies to manage higher bill-of-materials costs. Manufacturers may absorb these costs, adjust product specifications, or pass increases to consumers, potentially affecting device pricing in a competitive market.
