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Xiaomi CEO Says AI-Fueled Memory Spike Is Squeezing Phone Business

Official data show memory prices at multi‑year peaks, with AI demand diverting supply to servers.

Overview

  • Lei Jun said the surge in DRAM and NAND costs has put significant pressure on Xiaomi’s phone unit and pledged to try various methods to reduce the burden on buyers.
  • Xiaomi president Lu Weibing described the upswing as a long cycle that could extend to late 2027 and said the company currently faces no stock shortages.
  • China’s NDRC price monitoring center reported DRAM and NAND at their highest levels since tracking began in 2016, with some DDR4 8Gb spot prices jumping from $3.2 to about $15.
  • Supply‑chain reports say Samsung and SK Hynix have notified customers of planned DRAM hikes for Q2 2026, with DDR5 chips rising roughly 40% from the new quarter.
  • Analysts warn of a widening supply gap tied to AI and data‑center demand, with expectations of broader device cost pressures, steeper phone prices from March, and potential production cuts for low‑end models.