Experts warn computer chip price surges to continue

Computer chips and memory prices are surging around the globe, putting upward pressure on electronic product prices in Hong Kong. Local experts warn that the situation is likely to persist for at least several months.

Several technology companies announced the prices for smart phones, computers and other devices are set to rise in the coming days.

Industry insiders explain that over the past two years, driven by the AI boom, major chip and memory manufacturers shift their investments towards higher-profit products, including AI-specific chips for supercomputing and data centres. This cut supply in the traditional consumer market, causing prices to spike.

Hearing the news, some residents are hoping to stock up before the price hikes at a computer shopping centre in Sham Shui Po.

This customer says that upon hearing about the price rises, he made up his mind to purchase a domestic-brand computer, with 16GB of RAM and 1TB of storage for around 6,000 HK dollars.

Others are hoping that buying later would still mean a better price.But that's not likely going to happen. Industry experts believe the demand for lower-end chips and memory is massive, while any expansion of production capacity could take several years.

When supply cannot match demand, prices will continue to go up.

And computer retailers in town say the price hike is likely to push sales down, and they expect the sales level to drop by around 20% when compared to last summer.