[News] MediaTek, Qualcomm Reportedly Cut 4nm Wafer Starts, Down ~15% YoY Amid Rising Memory Costs

Surging memory prices are weighing on end demand, with smartphone demand showing signs of cooling. According to Commercial Times, the market outlook remains weak, prompting SoC vendors to scale back wafer starts, with sources saying MediaTek has begun reducing its 4nm wafer starts at foundries. MediaTek is not alone, as Wccftech notes that Qualcomm is also reportedly cutting its 4nm wafer starts.

Commercial Times further notes that MediaTek has adjusted its wafer input, with overall volumes down around 15% from last year. The company also said at its most recent earnings call that the smartphone end market could see a year-on-year decline.

Wccftech adds that price pressures are building across the broader device ecosystem, not just among smartphone OEMs. According to the report, Samsung has raised prices in South Korea for 512GB and 1TB variants across several tablet models, as well as for the Galaxy S25 Edge, Galaxy Z Fold 7, and Galaxy Flip 7.

Rising Memory Costs Pressure Smartphone Market

As Commercial Times notes, SoC vendors indicate that memory quotes in the first quarter were four times higher than a year earlier. As a result, the cost of a smartphone with a 12GB + 256GB memory configuration has risen by about NT$3,000 compared with last year. Surging memory prices are prompting smartphone brands to pass costs on to consumers, likely further weighing on end demand.

Commercial Times adds that the impact is currently more pronounced in the mid- to low-end segments, while the outlook for high-end models is also not optimistic. Still, premium devices retain greater pricing power, with the above-US$600 segment seen as relatively more resilient.

Sources cited by Commercial Times say that in entry-level smartphones, DRAM and NAND together account for up to 43% of the bill of materials (BOM), exceeding the cost of the main SoC. This is prompting brands to adopt a more cautious approach to specification upgrades, further compressing chip procurement budgets and volumes.

2nm Transition and Industry Consolidation Reshape Smartphone Market

In addition, the report notes that smartphone SoCs are set to enter the 2nm node, which will drive up costs. Industry sources say hardware integration and ecosystem buildout, such as Apple’s vertical integration and Qualcomm’s expansion in wearables, will be key to competition.

At the same time, as Commercial Times notes, 2026 is bringing major shifts among smartphone brands. OnePlus and realme have returned as sub-brands under OPPO, while Meizu exited the smartphone market in March. Supply chain sources say intensifying competition is pushing major players to consolidate resources and centralize procurement for stronger bargaining power, but this is expected to put significant downward pressure on SoC pricing.

According to TrendForce, soaring memory prices are set to weigh heavily on global smartphone production in 2026, with total output forecast to decline 10% YoY to around 1.135 billion units. Under a bear-case scenario, the contraction could widen to 15% or more.

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• Memory Price Surge Intensifies Retail Pricing Pressure, Putting Global Smartphone Production at Risk of a Sharp Decline in 2026, says TrendForce
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