The world is currently facing a serious crisis caused by a global shortage of semiconductor chips. This situation has been driven by the rapid rise of artificial intelligence (AI), prompting chip manufacturers to prioritize AI-related demand while scaling back production of conventional chips used in consumer electronics such as smartphones, computers, and household appliances. As a result, chip prices have surged due to a growing imbalance between supply and demand. Both AI chips and traditional chips remain in high demand, yet production capacity has failed to keep pace.

 

This global chip crisis has also affected Indonesia. Rising international chip prices are expected to push up gadget prices domestically, particularly in the budget smartphone segment. According to IDC Indonesia’s Associate Market Analyst for Devices Research, Vanessa Aurelia, several vendors have already adjusted prices for certain models since the beginning of the year.

 

IDC believes that low-end smartphones will be hit the hardest, as profit margins in this segment are relatively thin, leaving manufacturers with limited ability to absorb higher costs. Consequently, price increases are likely to be more noticeable in this category. In contrast, mid-range and premium segments still offer some flexibility, although part of the additional costs may still be passed on to consumers, including through adjustments to device specifications to manage expenses.

 

IDC also expects consumers to feel the impact immediately once prices rise, meaning buyers will need to allocate larger budgets to purchase their desired devices. Several manufacturers have confirmed upcoming price adjustments. Vivo Indonesia, for instance, stated that it will raise prices on selected products after considering multiple factors, including component costs, with varying increases across different product series and market segments.

 

Meanwhile, ASUS Indonesia has announced that it will also adjust laptop prices due to ongoing disruptions in the global component supply chain. The move is aimed at maintaining supply continuity and product quality, and the price changes will apply across all ASUS laptop segments starting in the first quarter of 2026.

 

Regarding global chip price trends, IDC projects that memory shortages will persist and worsen in the first half of 2026 as the supply-demand gap continues to widen. Although conditions are expected to gradually improve in the second half of the year, prices are likely to remain elevated at least until early 2027.

 

This situation is largely driven by large-scale data center construction and the shift of capacity expansion and investment by major memory producers toward hyperscale and AI-focused segments. Supply of lower-end memory such as DDR4, commonly used in entry-level smartphones, continues to be reduced, while the transition to DDR5 has not yet occurred on a broad scale and is still prioritized for AI and hyperscale applications. At the same time, demand from smartphones, PCs, and the automotive sector—particularly electric vehicles—continues to grow strongly.

 

Rising prices are also expected to spill over into the second-hand market. In the smartphone segment, higher prices in official channels could drive increased demand in the used market, eventually pushing prices upward. In the PC and PC component market, the impact is expected to be even more pronounced due to the more established nature of the second-hand ecosystem.