Chip shortage, weak rupee may push up TV prices

Prices of televisions are expected to rise by 3-4% from January next year on account of the rising cost of memory chips and depreciation of the rupee

- PTI

Some TV manufacturers have already informed dealers about expected price hikes.

(MINT)

Prices of televisions are expected to rise by 3-4% from January next year on account of the rising cost of memory chips and depreciation of the rupee, which recently crossed the 90-to-a-dollar mark for the first time.

The falling rupee has put the industry in a precarious position, as the domestic value addition in an LED TV is around 30% only, and major components like the open cell, semiconductor chips and motherboard, are imported.

Moreover, this is coupled with the memory chip crisis, where a severe global shortage is driven by massive demand for high-bandwidth memory for artificial intelligence (AI) servers, causing prices for all memory types (DRAM, flash) to surge. Chipmakers are focusing on high-profit AI chips, tightening supply for legacy devices like TVs.

Haier Appliances India president N.S. Satish told PTI that prices of LED TV sets will increase by 3% because of a shortage of memory chips and the weak rupee.