Home / Technology / Memory Surge Hits Wi-Fi Routers, Raising Prices
Memory Surge Hits Wi-Fi Routers, Raising Prices
17 Feb
Summary
- Memory prices have surged 600% year-over-year, impacting router costs.
- Memory now constitutes over 20% of BOM for low-to-mid-end routers.
- Telcos face delayed broadband rollouts and increased procurement costs.
Consumer Wi-Fi routers are facing significant price hikes due to a dramatic increase in memory chip costs. Market analysts report a 600% year-over-year rise in memory prices, with memory now comprising over 20% of the total bill of materials for lower-end routers, a substantial jump from approximately 3% a year ago.
This "memory winter" is primarily driven by high demand from AI data centers. The surge in memory costs, which has already seen a 90% increase since late 2025, is expected to peak in the first half of 2026. This trend will particularly affect telecommunications companies planning aggressive broadband deployments for the upcoming year.
The rising procurement costs for routers, CPEs, and set-top boxes will likely slow down these deployments. Telcos with ambitious plans for AI-enhanced services, requiring higher memory and compute components, may encounter substantial obstacles. Monitoring OEM supply security and BOM cost trends will be crucial for telcos in the coming months.
