TV component costs surge as AI demand drives semiconductor shortage

The television industry is facing a significant supply chain crisis as the surging demand for AI-related hardware drives up the cost of essential components. According to market research firm Omdia, semiconductor prices have risen so sharply that, for the first time, the processing board can account for up to 50% of a TV's total production cost, often exceeding the price of the display panel itself. DRAM and NAND flash memory prices have increased significantly, while Wi-Fi modules have become more expensive than some 4K panels. This trend, largely fueled by AI's massive appetite for semiconductors, is expected to persist through 2027. While the impact is currently most visible in smaller, budget-friendly TV models, analysts warn that manufacturers may eventually be forced to pass these costs on to consumers through higher retail prices or reduced device specifications, further squeezing profit margins in an already competitive market.