WSJ What’s News – “Chip Crisis Sends Consumer Tech Prices Soaring”

Date: February 17, 2026
Host: Luke Vargas
Guests: Tim Martin (WSJ Korea Bureau Chief), James Finelli (WSJ Reporter), Carl Churchill (Climate Reporter), others

Episode Overview

This episode primarily explores the ongoing global memory chip shortage and its dramatic effect on consumer tech prices, with a special focus on how AI demand has strained the supply chain. The show also touches on other major headlines: the US government’s partial shutdown, New York City’s budget crisis, the passing of Jesse Jackson, corporate DEI (Diversity, Equity, and Inclusion) rollbacks, notable executive retirements, and an exceptionally unusual American winter.

Key Discussion Points and Insights

1. Soaring Consumer Tech Prices Due to Memory Chip Shortage (01:02–03:35)

• Acute Shortage:
  The tech supply chain is being squeezed as a “growing and acute shortage of memory chips is squeezing the makers of phones, laptops, and game consoles, sending consumer tech prices skyrocketing,” (B, 01:02).

  • AI demand is a major driver: “AI demand gobbling up high end semiconductors.”

• Company Strategies:
  Tim Martin detailed how companies are coping:

  • Dell: Raised prices for some commercial laptops by up to 30%.
  • Acer: Reduced memory in certain budget models.
  • Xiaomi: Dropped lower memory model options to protect margins.

  “We’ve seen PC makers like Dell raise prices for some commercial laptops by as much as 30%... Xiaomi... got rid of the lower memory option for certain lines of phones so you can only get the higher memory options which allow them to protect their margins.”
  — Tim Martin (D, 01:38)

• Big Tech Not Immune:
  Bulk buying can only delay the pain. Even companies like Apple, Samsung, and Nintendo will feel the pinch as old stockpiles run out.

  “Those stockpiles only last so long…at some point they’ll be back in the market buying memory at these astronomical prices.”
  — Tim Martin (D, 02:10)

• Historic Price Surges:
  The rate of increase is unprecedented.

  “We’ve never seen price rises like this so quickly. We’ve seen a sevenfold increase for the major types of memory just in the past 12 months or so.”
  — Tim Martin (D, 02:15)

• Supply Chain Evolution:
  The crisis is different from pandemic-era shortages—likely more severe and longer lasting.

  “This creates not just a short-term headache... but sort of almost like an existential evolution that they’ll have to think, how do we now compete against this new category of AI to get the really essential components we need?”
  — Tim Martin (D, 02:51)

• Impact on Sales and Margins:
  Higher prices mean fewer consumers purchasing, squeezing margins further.

• Manufacturing Bottleneck:
  Factory buildouts are under way, but not keeping pace.

  • Micron is spending $200 billion on new US and Japan factories (open 2028).
  • SK Hynix: New fabs in Indiana and South Korea opening this year. (B, 03:35)

2. US Government Shutdown Update (03:35–05:24)

• Partial Shutdown:
  The Department of Homeland Security is the main agency affected—TSA staff working but not necessarily being paid; House and Senate are on recess, so no immediate resolution.

  • Political wrangling centers around law enforcement reforms: body cameras, visible identification, and stricter warrant requirements for ICE/CBP.

• Notable Exchange:
  “Why is it that ICE agents who are untrained are being unleashed on American communities with this type of lawlessness, violence, and brutality?... Where’s the mask? I don’t know of another law enforcement agency in the country that has an 8,000% increase in threats.”
  — Tom Homan, White House border czar (E, 04:53)

3. NYC Faces Major Budget Shortfall (05:24–06:50)

• NYC Budget Challenge:
  New Mayor Zoran Mamdani must present a balanced budget amid a $12B shortfall over the next two years.
  • Key campaign promises (affordable housing, universal childcare, free city bus service) are now on the chopping block.
  • Some relief comes from higher-than-expected Wall Street bonuses, reducing the shortfall to $7B.
  • Mayor seeks state approval for tax hikes on millionaires and corporations.

  “They think that they’ll be able to shrink that budget deficit from 12 billion down to 7 billion...the mayor is seeking to get state lawmakers to approve some tax increases.”
  — James Finelli (F, 05:56)

4. Passing of Jesse Jackson (06:50–07:38)

• Civil rights leader Reverend Jesse Jackson dies at 84.
  • Remembered for his oratory and advocacy, as well as two historic presidential runs.

  “A gifted public speaker, Jackson was known for fiery rhetoric, often advocating for the interests of working people and especially minorities.”
  — Host Luke Vargas (B, 06:50)

5. Corporate News: Hyatt Chair Resigns; Goldman Sachs DEI Rollback (08:10–09:48)

• Thomas Pritzker Retires from Hyatt:

  • Stepped down after documents tied him to Jeffrey Epstein.
  • Admitted to “terrible judgment” regarding his associations.

• Goldman Sachs Ends DEI Board Screening:

  • Will stop considering race, sexual orientation, and similar diversity factors for board nominations, following activist investor pressure.
  • Part of wider Wall Street trend to scale back DEI initiatives.

• Activist Push at Norwegian Cruise Line:

  • Elliott Investment Management takes >10% stake; plans to push changes at under-performing company.

6. America's Bizarre Winter Weather (09:48–10:49)

• Divided Climate:

  • "Cool east, warm west" pattern this winter:

    “We have two different winters going on.” — Carl Churchill (C, 09:48)

  • Record cold and heavy snowfall in the eastern U.S.; unusually warm and snow-free in the west.

  • High heating bills, ice accumulation leading to property damage and power outages, but “east coast ski resorts” are booming.

  “Much of this extreme cold has headed very far south where homes and infrastructure are not built to handle extreme cold.”
  — Carl Churchill (C, 10:01)

Notable Quotes

• On the Chip Crisis:

  “We’ve never seen price rises like this so quickly. We’ve seen a sevenfold increase for the major types of memory just in the past 12 months or so.”
  — Tim Martin (D, 02:15)

• On the Supply Chain Challenge:

  “Companies are really scrambling to try and figure out” how to compete for AI-essential components.
  — Tim Martin (D, 02:51)

• On Law Enforcement Oversight:

  “Why is it that ICE agents who are untrained are being unleashed on American communities with this type of lawlessness, violence and brutality?”
  — Tom Homan (E, 04:53)

• On NYC’s Budget Struggle:

  “Some of his biggest promises were to build more affordable housing and to expand universal childcare and to create a free city bus service. But all those things come with big price tags.”
  — James Finelli (F, 05:56)

Timestamps of Important Segments

• Chip Shortage & Tech Prices: 01:02–03:35
• US Government Shutdown Details: 03:35–05:24
• NYC Budget Crisis: 05:24–06:50
• Jesse Jackson Obituary: 06:50–07:38
• Hyatt/Goldman Sachs News: 08:10–09:48
• Unusual Winter Weather: 09:48–10:49

Tone and Style Reflection

The episode maintains a brisk, factual, and business-first tone typical of WSJ’s news updates, interlacing sharp expert commentary with quick-hit analysis and a focus on implications for markets, policy, and consumers.

This summary provides a clear roadmap through the episode’s central stories—especially the impact of the chip crisis on tech prices—while contextualizing related economic and political developments for those who haven’t tuned in.