Skip to content
Financial Insights Unveiled — Master Your Money — Harnessing AI for Financial Insights — Financial Tech Innovations

Fears Kiwis may pay more for electronics as chip shortages loom

Rapid growth in AI is driving demand for high tech superconductors, creating shortages of less powerful chips used in things such as smartphones.

,   and  Administrator
1 min read
In this picture we can see a store here, we can see racks here, there are some bakery items present...
In this picture we can see a store here, we can see racks here, there are some bakery items present here, we can see lights at the top of the picture, there are some boards here, there is the ceiling here, at the bottom there is floor, we can see price tags here.

Fears Kiwis may pay more for electronics as chip shortages loom

Prices for computer chips are set to rise sharply in the coming months, hitting consumer electronics and smartphones. The surge in demand for AI technology has triggered a global shortage, pushing costs up by as much as 60% in some cases. New Zealanders will likely face higher prices for tech products as the effects spread into 2026.

The rapid expansion of artificial intelligence has created an unexpected knock-on effect. High demand for advanced AI chips is now squeezing supplies of lower-end semiconductors used in everyday devices. Manufacturers like Samsung have already announced DRAM price hikes of up to 60% on existing stock, with further increases expected into early 2026.

Global automakers are also scrambling to secure supplies, fearing a repeat of past shortages. During the Covid-19 pandemic, New Zealand faced similar disruptions, particularly with car components. This time, the problem is broader, affecting everything from smartphones to household electronics. Tariff negotiations and policy uncertainties are adding to the strain on supply chains. Investment in new production has slowed, while costs for raw materials and logistics continue to climb. Industry analysts predict global revenues for AI chips alone will exceed $1 trillion a year by 2028. The price rises and shortages are expected to become more visible in early 2026. Once current inventories run out, consumers will notice the impact at retail level. Manufacturers have already begun passing on higher costs to suppliers and retailers.

The chip shortage will push up prices for a wide range of electronics in New Zealand. With global demand for AI technology still growing, the pressure on supply chains is unlikely to ease soon. Consumers and businesses will need to adjust to higher costs for tech products in the near future.

Read also:

Related

Latest