AI-related demand for high-bandwidth memory (HBM) is now producing tangible aftershocks across the global semiconductor industry. This is tightening wafer foundry capacity and squeezing out the supply of DRAMs often used in smartphones' SoCs, such as the DDR5. And, MediaTek is likely to be the first major SoC manufacturer to be affected.
LPDDR5x delivery period is now stretching out to between 26 and 39 weeks, which means orders placed right now won't be delivered until the middle of 2026
As per a report by Taiwan's Commercial Times, the high demand for HBM is now affecting the smartphone SoC manufacturers in two distinct ways:
- It is squeezing out the production capacity for DDR5, leading to stretched delivery times of between 26 and 39 weeks.
- The HBM factor is also tightening available wafer capacity, especially as the die size for HBM is between 35 percent and 45 percent larger than that for a comparable DRAM.
As such, MediaTek's gross profit is expected to be seriously affected by these dynamics, especially as it is about to switch to the 2nm node at a time when TSMC is reportedly charging as much as $30,000 for a single 2nm wafer.
In fact, according to the report, MediaTek will face gross margin pressure as soon as the fourth quarter of 2025. Consequently, the designer of SoCs might have no recourse other than to increase their prices.
Qualcomm, whose products are already priced at a relative premium, might be able to weather this storm better.
Concurrently, MediaTek and Qualcomm are unlikely to jump ship to the Samsung Foundry as they've likely already taped out the designs for their 2026 chips. As such, Samsung's 2nm GAA is likely to attract significant orders only by 2027.
Meanwhile, as we reported recently, memory chip costs are already affecting smartphone OEMs like Xiaomi, whose President specifically flagged this issue last week in trying to justify increased prices for the Redmi K90 series.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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