An AI-led memory chip shortage is driving up prices of smartphones, laptops, TVs, ACs and other electronics, adding fresh pressure on retail inflation in India.

India

Who

Counterpoint Research, Nomura, Sumit Sadana, Federal Reserve economists, Micron

What

When

Sun, 14 Jun 2026 09:41:26 GMT · 1h 45m ago

Where

India ·

Why

The supply shortage of chips essential to consumer electronics has led to a massive rise in their prices, which electronics manufacturers are passing on to consumers.

The Frontline Impact

How this affects you

The ongoing memory chip shortage is causing price hikes in consumer electronics across India, contributing to retail inflation and potentially leading to a significant contraction in global smartphone shipments, with low-end devices facing market ejection. This situation is predicted to worsen, impacting India's inflation outlook and consumer access to affordable electronics.

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Verified Sources & Citations

The Indian Express
https://indianexpress.com/article/explained/explained-economics/memory-chip-shortage-electronics-price-rise-inflation-10738987/
HIGH

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