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According to reports, leading smartphone chip designers Qualcomm and MediaTek are planning to raise the prices of their flagship mobile System-on-Chip (SoC) for 2026 due to the dual pressures of advanced wafer fabrication processes and soaring memory prices.
Industry consensus suggests that the demand for high-end memory remains strong, and relying solely on Chinese production capacity is insufficient to quickly alleviate shortages. The trend of rising memory prices is expected to continue until 2026, with a potential easing not anticipated until 2027. Meanwhile, while there may be some price reductions in mature process nodes, prices for advanced process nodes are almost certain to rise.
Qualcomm and MediaTek are seen as the companies most directly affected, facing both the premium costs of 2nm processes and the ongoing pressure of rising memory prices. Market observers generally predict that both companies will increase the pricing of their flagship platforms for 2026. However, this price increase may not fully maintain existing profit margins, and some of the additional costs may be passed on to the pricing of end products.
Some chip manufacturers have indicated that if it were not for the need to maintain stable performance growth in the AI smartphone era and to compete with Apple, Qualcomm and MediaTek might take a wait-and-see approach regarding the adoption of 2nm technology.
This impact is not limited to mobile chips but also affects PCs and other consumer electronics that require advanced process technology. Although processors in these devices may not necessarily adopt cutting-edge 2nm technology, cloud AI chips have almost occupied all advanced nodes below 5nm, leading to restrictions on both front-end and back-end wafer fabrication capacities across the industry.
Several industry insiders emphasize that the biggest challenge in 2026 will be optimizing product portfolios within limited advanced process capacities to maximize cost-effectiveness. Given the high prices of advanced nodes and memory costs, achieving even a slight profit increase through capacity allocation is crucial.
Additionally, the market is concerned about the extent to which new costs will be passed on to end product prices and the resulting impact on sales. The latter is particularly critical— the impact of weak demand in the end market on revenue may be more severe than a decline in unit prices.
Some suppliers providing memory module manufacturers have noticed that purchasing behavior in the consumer application sector has become more cautious.
This caution stems from the hesitation of memory module manufacturers regarding shipments amid ongoing price fluctuations and the expectation of further price increases in the coming year. How customers adjust order volumes and negotiate pricing will remain key focus indicators for related IC design companies.
Some IC design manufacturers believe that even if advanced processes or memory prices do not rise further, the ongoing market uncertainty may still lead to fierce price competition in the consumer application sector. The deteriorating macroeconomic environment has caused consumers to tighten budgets, making purchasing decisions more cautious, and relying solely on the proliferation of AI applications may not reverse this trend.
As the situation becomes increasingly severe, pricing pressure will intensify, prompting many peripheral chip manufacturers to increasingly focus on cost control strategies.
MediaTek has not publicly commented on specific product price adjustments, but previously stated in a financial report conference call that it plans to make strategic adjustments to pricing and capacity allocation in response to rising manufacturing costs amid supply constraints in 2026.
Original Title:
MediaTek and Qualcomm face 2nm, memory cost pressures driving flagship SoC price hikes
Original Media:digitimes asia
