600% Memory Price Surge Threatens Telcos' Broadband Router, Set-Top Box Supply

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by msmash

February 14, 2026

AI-Generated Deep Dive Summary

Telecom operators planning aggressive fiber and fixed wireless broadband rollouts face a critical challenge:DRAM and NAND memory prices for consumer applications have surged by over 600% in the past year. This dramatic increase is driven by higher-margin AI server demand absorbing available supply, according to Counterpoint Research. The impact on routers, gateways, and set-top boxes has been particularly severe, with consumer memory prices jumping nearly seven times over nine months—far outpacing the threefold increase seen in mobile memory prices. The financial strain on telecom infrastructure is significant. Memory now accounts for more than 20% of the bill of materials (BOM) for low-to-mid-end routers, up from just 3% a year ago. This sharp rise has made memory components increasingly expensive for manufacturers, with Counterpoint projecting that prices will continue to climb through at least June 2026. Telcos aiming to deploy AI-enabled customer premises equipment face additional hurdles, as these devices require even more advanced compute and memory capabilities. The current supply chain dynamics pose a major challenge for telecom operators. As they accelerate broadband deployments, the soaring costs of essential components like DRAM and NAND are threatening project timelines and budgets. Unlike smartphones, which have experienced only a fraction of this price surge, routers and set-top boxes are bearing the full brunt of the memory shortage. This situation highlights the growing tension between consumer electronics demand and the lucrative AI server market, where manufacturers prioritize higher-margin products. For tech enthusiasts and industry observers, this story underscores the delicate balance of global supply chains and the evolving demands of technology sectors. The surge in memory prices not only impacts telecom infrastructure but also raises questions about

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Originally published on Slashdot on 2/14/2026