AI semiconductor demand to drive up television prices

Television prices are expected to rise significantly due to the growing demand for semiconductors driven by the artificial intelligence sector. According to a report from research firm Omdia, the cost of mainboards for small and medium-sized televisions has exceeded the cost of the display panels for the first time in history.

The global boom in generative AI has led data centers and servers to consume massive quantities of DRAM and NAND flash memory, causing price spikes in semiconductors, integrated circuits, and Wi-Fi modules. For instance, the production cost of a mainboard for a popular 55-inch 4K television has reportedly jumped from less than $34 to over $118 within a single year.

While manufacturers have previously attempted to offset rising costs through advertising revenue and app licensing, these margins are no longer sufficient to prevent price increases. The impact is expected to be most significant in the budget and mid-range television segments.