600% Memory Price Surge Threatens Telcos' Broadband Router, Set-Top Box Supply
Source: Slashdot
Supply Challenge Overview
Telecom operators planning aggressive fiber and fixed wireless broadband rollouts in 2026 face a serious supply problem — DRAM and NAND memory prices for consumer applications have surged more than 600 % over the past year as higher‑margin AI server segments absorb available capacity, according to Counterpoint Research.
Routers, gateways, and set‑top boxes have been hit hardest, far worse than smartphones; prices for “consumer memory” used in broadband equipment jumped nearly 7× over the last nine months, compared to 3× for mobile memory. Memory now makes up more than 20 % of the bill of materials in low‑to‑mid‑end routers, up from around 3 % a year ago. Counterpoint expects prices to keep rising through at least June 2026. Telcos that were also looking to push AI‑enabled customer premises equipment — requiring even more compute and memory content — face additional headwinds.