The global memory shortage that has already driven up prices for PCs, laptops, and smartphones may soon hit another everyday device: Wi-Fi routers. Market researchers warn that surging memory costs could significantly raise router prices in 2026, potentially slowing broadband rollouts and affecting consumers worldwide.
According to analysts at Counterpoint Research, memory prices have increased sharply due to heavy demand from AI data centers. Since late 2025, memory costs have risen by about 90 percent, with year-over-year increases reaching as high as 600 percent. Because routers and networking equipment rely on the same memory components used in computers and mobile devices, they are now facing similar cost pressures.
Routers appear to be among the hardest-hit products. Over the past nine months, memory prices for smartphones have roughly tripled, but the cost of memory used in consumer broadband devices—such as routers, gateways, and set-top boxes—has surged nearly sevenfold. In low-to-mid-range routers, memory now accounts for more than 20 percent of total manufacturing costs, compared with just around 3 percent a year earlier.
The impact could extend beyond retail prices. Telecommunications companies planning large-scale broadband expansions, including fiber and fixed wireless access networks, may face higher equipment costs and supply constraints. Analysts say these pressures could slow infrastructure deployment and complicate plans for more advanced, AI-enabled home networking hardware that requires additional processing power and memory.
Manufacturers with weaker supply agreements are particularly vulnerable, as they have less negotiating power to secure memory components at stable prices. Industry observers expect memory costs to continue rising through early 2026 before potentially stabilizing later in the year.
For consumers, the immediate effect may not be obvious, but new routers and networking hardware could become more expensive in the coming months. As the memory shortage reshapes the broader electronics market, even everyday devices like home Wi-Fi equipment are feeling the ripple effects.
