Memory chip shortage hits global smartphone processor market

A prolonged memory chip shortage has triggered a sharp slowdown in the global smartphone processor (SoC) market, with total chipset shipments falling 15 percent year-on-year in the first half of 2026, according to the latest report by market research firm Counterpoint Research.

The decline has been driven by rising memory chip prices and supply constraints, prompting smartphone manufacturers to slow production of new handsets.

The downturn has dealt the biggest blow to the market’s two leading chipset makers, Qualcomm and MediaTek. Shipments from both companies fell by around 25 percent compared with the first half of 2025.

Qualcomm’s flagship Snapdragon 8 Elite Gen 5 and other premium processors recorded only modest growth amid weaker smartphone demand. MediaTek also saw a sharp drop in sales of its affordable 5G chipsets, although its flagship Dimensity 9500 series managed to maintain relatively strong performance.

Despite the overall market slump, Apple, Unisoc and Samsung posted shipment growth during the period.

Apple benefited from strong demand for its upcoming iPhone 17 lineup, boosting shipments of its A19 and A19 Pro processors.

Unisoc also expanded its market share as smartphone brands increasingly opted for 4G chipsets in entry-level devices due to the higher cost of 5G processors. The company further strengthened its position through new partnerships with Xiaomi’s Redmi and Poco smartphone brands.

Samsung also recorded growth in chipset demand, outperforming the broader market.

Counterpoint Research forecasts that global smartphone chipset shipments could decline by 14 percent for the full year in 2026.

The research firm expects the entry-level smartphone segment to be hit the hardest, with chipset shipments for budget devices likely to fall by nearly 30 percent.

Industry analysts warn that the memory chip market is unlikely to return to normal before the second half of 2027, meaning supply constraints are expected to continue affecting smartphone production volumes and device prices over the coming months.