7x increase in memory costs fueling price increases in ISP-provided routers, gateways, and set-top boxes — home fiber rollouts may slow, and installations could become more expensive

Source: Tom’s Hardware

Image credit: Getty Images

Memory Cost Surge

The insane rise in DRAM pricing is now affecting common household electronics. Prices for the memory required by ISP‑provided broadband routers, set‑top boxes (STBs), and gateways could rise sevenfold according to Counterpoint Research.

Counterpoint researchers expect this steep climb to last at least through June and likely continue due to the ongoing supply crisis. Memory, which previously accounted for about 3 % of the average bill of materials (BOM) for these devices, has now ballooned to 20 %, exerting a outsized influence on final prices.

Consumer DDR4 router vs. mobile phone LPDDR4 price graph (Image credit: Counterpoint)

Impact on ISP Equipment

Routers are expected to be hit the hardest because OEMs lack the negotiation power and long‑term supply contracts enjoyed by larger industry players. DDR4 was already being phased out before the crisis, and supply constraints forced a surge in prices. The AI boom, which adds memory‑hungry features to routers and STBs, has further exacerbated the issue—some equipment now contains as much RAM as a typical PC.

The rising equipment costs could also affect ISP fiber rollouts. When the combined price of routers, gateways, and STBs becomes a significant factor, ISPs may need to pass these costs onto consumers, who have grown accustomed to receiving the hardware for free.

Industry Responses

• Nokia: In its Q4 2025 earnings statement, the CEO noted that while RAM pricing isn’t a huge part of the macro picture, the company will “secure the supply based on the commitments [it does have]” and expects the cost increase to be passed through to pricing.
• MediaTek: Stated it has sufficient memory for datacenter needs but will “adjust its pricing to reflect the rising supply chain costs and allocate our supply across products based on the overall profitability.”
• Qualcomm: The CEO highlighted that, with data centers as priority #1, the industry‑wide memory shortage and price hikes are likely to define the overall scale of the handset industry through the fiscal year.