The artificial intelligence boom has triggered a sharp rise in chip prices, forcing manufacturers to increase costs and leading to reduced demand for electronics, reports infohub.kz.
According to a new report from analytics firm Counterpoint Research, global shipments of flat display panels will decline by 4.7% in 2026. The main reason for the market downturn is the rapid increase in memory prices. The active development of AI infrastructure consumes the bulk of chip production, causing shortages in the consumer segment. As a result, vendors are passing on increased costs to buyers, raising the price of finished devices.
The smartphone and budget-to-mid-range electronics markets will be hit hardest, as companies lack the margin to absorb costs. Display shipments for mobile phones will drop by 9.5%, as users delay purchasing new devices or opt for used equipment. The PC segment is also under pressure, although the decline in shipments of displays for laptops and monitors will be less severe than previously forecast.
Against this backdrop, premium technologies and the automotive sector are showing positive momentum. Manufacturers are increasingly choosing OLED panels to protect margins, leading to a 50-60% increase in shipments for monitors and laptops. The only major category with sustained growth will be automotive displays, as modern carmakers continue to increase the number and size of screens in the cabin.