The hike in RAM costs caused a widespread increase in prices of many consumer electronics. This trend was expected to stay constant or even increase. However, DDR5 RAM prices dipped for the first time in months earlier this week, possibly due to the release of Google TurboQuant. The sudden shift in prices could be why chipmakers may slash chip shipments.
Mid-range devices could be affected
According to Wccftech, MediaTek and Qualcomm have apparently reduced production of 4nm mobile SoCs (system on chip). This results in a reduction of 20000 to 30000 wafers, which is equivalent to roughly 15 to 20 million chipsets. It’s believed that the mid-range smartphone would be affected, as the 4nm process is now mostly used for mid-range chipsets.
For reference, MediaTek’s 4nm chipsets include the Dimensity 7200, 7300, 8200, 8450, 9000, and 9300 series. Qualcomm also has some 4nm chipsets like the Snapdragon 4 Gen 2, Snapdragon 4s Gen 2, Snapdragon 7s Gen 2, and Snapdragon 8 Gen 3. The latter’s Snapdragon 8 Gen 3 is a flagship chipset from a few years back, but the chip shortage could result in brands falling back on older chipsets like that.
Good Morning! 4/1 Foreign Media Summary
– MediaTek , KYEC , and UMC : US Firms Cut Price Targets
US brokerage houses observed that inventory corrections for Chinese smartphone chips have begun. Rising memory costs are gradually suppressing demand for Chinese smartphones. Both… https://t.co/3VIg0Rhbi3— 駿HaYaO (@QQ_Timmy) April 1, 2026
Possible consequences
If the news is true, it would mean MediaTek and Qualcomm are convinced that fewer consumers will buy smartphones in 2026. This lowered demand would justify slashing production of chipsets for mid-range smartphones, which typically make up the bulk of smartphone sales.
Would it cause prices of mid-range smartphones to drop? It’s possible, but we haven’t seen signs of the current trend (of massive price hikes) reversing. The AI-driven demand for RAM remains high, so many AI companies could choose to continue expanding their AI servers. This means smartphone brands will continue to face shortages.
Of course, we’re not experts on the topic and can only speculate using what we know so far, so take the above with a grain of salt. If you have more knowledge on the topic or insights on the industry, please share some details in the comments below.
