Rumor
MediaTek reduces TSMC 4nm wafer starts by 15% amid rising memory costs
Thursday, April 2, 2026 at 02:21 AM
MediaTek has reportedly reduced its 4nm wafer orders at TSMC by 15% year-over-year. This cut is attributed to rising memory costs (DRAM and NAND Flash), which now account for approximately 43% of a smartphone's bill of materials, suppressing demand for mobile processors across low-to-high-end segments.
Context
Smartphone chip giant MediaTek has reportedly reduced its 4nm wafer starts at TSMC by 15% compared to last year. This contraction is primarily driven by a severe global memory shortage and surging component costs, with DRAM and NAND now accounting for a staggering 43% of a handset’s total bill-of-materials (BOM). While MediaTek recently launched its flagship Dimensity 9400 on 3nm technology, the broader mid-to-low-end market is facing significant pressure as soaring costs slash consumer demand.
Analysts expect the memory supply-demand imbalance to peak throughout 2026, with combined prices for storage components projected to surge 130%. This shift is forcing Android OEMs to either raise prices or cut specifications, disproportionately impacting the high-volume, lower-margin segments where MediaTek typically leads. As production capacity for consumer electronics is reallocated toward high-margin AI data center solutions like HBM, smartphone manufacturers are bracing for a projected 8.4% decline in global shipments this year.
Sources (11)
MediaTek | Official Insights from MediaTek IncGartner Says Surging Memory Costs Will Reduce Global PC and Smartphone Shipments in 2026MediaTek cutting back 7nm, 6nm wafer starts at TSMC - digitimesMajor breakthrough in process below 1 nanometer! TSMC ...IDC - Global Memory Shortage Crisis: Market Analysis and the Potential Impact on the Smartphone and PC Markets in 2026 Memory Price Surge Triggers Shifts in Smartphone BOM StructureMediaTek vs Qualcomm 5G Modems: An Evidence-based Technical Comparison of Efficiency, Cost, and Security · Issue 16Memory price increase timeline QoQ in 2026 | Sourceability
Related Companies
MediaTek
2454