Memory chip costs surge to half of device prices, Asus India warns

The cost of memory chips has emerged as a major driver of device pricing in India, with their proportion of total manufacturing expenses skyrocketing over the past 24 months. Memory components, which represented just 10-15 per cent of device costs two years ago, now account for nearly 50 per cent of the final price tag, according to Asus India's leadership.

The dramatic increase reflects tightening global supply conditions and sustained demand for memory semiconductors across consumer electronics. Industry analysts expect this upward pressure on costs to persist, with memory chip prices anticipated to climb by an additional 5-10 per cent during the October-December quarter.

The rising expenses threaten to further inflate device prices for Indian consumers at a time when technology adoption is accelerating across the country. Manufacturers face difficult choices between absorbing costs or passing them on to buyers in an already price-sensitive market.

The memory chip shortage and cost escalation underscore India's vulnerability to global semiconductor supply disruptions and the importance of developing domestic chip manufacturing capabilities. Industry observers say the situation is likely to remain challenging through the remainder of the fiscal year.