Chip Crisis Sends Consumer Tech Prices Soaring

Summary

---

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.

Transcript

[A]

Last year, Instagram launched Teen Accounts, which default all teens into automatic protections for who can contact them and the content they can see. And we'll continue adding new safeguards for teens to help give parents peace of mind. Explore Teen Accounts, automatic protections and all of our ongoing [e-mail] Teenaccounts.

[B]

Get ready for pricier electronics as a memory chip shortage squeezes consumer tech plus, another week, another partial government shutdown with no immediate end in sight, and we'll dig into the strangest American winter in years.

[C]

We have extreme cold on the eastern U.S. but then in the western U.S. we are dealing with record breaking temperatures in many instances which we polled readers and 52% so far have said this winter is worse than they remember.

[B]

It's Tuesday, February 17th. I'm Luke Vargas for the Wall Street Journal and here is the AM edition of what's news, the top headlines and business stories moving your world today. A growing and acute shortage of memory chips is squeezing the makers of phones, laptops and game consoles, sending consumer tech prices skyrocketing with AI demand gobbling up high end semiconductors. Our Korea bureau chief Tim Martin said that non AI buyers are having to choose between raising prices, trimming margins or reducing device memory.

[D]

So we've seen PC makers like Dell raise prices for some commercial laptops by as much as 30%. Acer for some of their budget computers, have reduced the amount of memory that come in certain models. And with Xiaomi, a Chinese smartphone company, they 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.

[B]

And Tim told us that even some of the bigger tech companies won't be immune to the memory shortage.

[D]

Some of the biggest names in tech, your Apples, your Samsungs, your Nintendo's, they have ability to buy in advance in bulk before some of these price hikes really take off. But those stockpiles only last so long, so at some point they'll be back in the market buying memory at these astronomical prices. I mean, 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. Things have never skyrocketed like this before and this is posing a new problem to companies.

[B]

Tim said that the current chip crunch does have parallels to pandemic era shortages, but is likely to be more severe and longer lasting.

[D]

We're unlikely to see any type of slowdown in these prices for years and this creates not just a short term headache for these tech hardware companies, 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? These skyrocketing prices for the basic components for these products are translating into forecasts for lower sales. Because their products are becoming more expensive, people are buying fewer of them, which means they have less margin or more pressure on their balance sheets. This is a new type of threat to the supply chain that companies are really scrambling to try and figure out.

[B]

The heart of the issue is chip manufacturing. With new factories or fabs being built but just not quickly enough, US Memory chip maker Micron is rushing to add capacity. It's spending $200 billion on factories in Idaho, New York and Japan that'll open in 2028. Meanwhile, Nvidia supplier SK Hyn is also building new fabs in Indiana and South Korea, with two new factories opening this year. The US Government is emerging from the holiday weekend partially shut down, and partially here means just the Department of Homeland Security. Its immigration enforcement personnel are still working and getting paid, but not so for the tsa. Staffers at the nation's airports can still log hours, but likely won't be compensated for that until after the shutdown is resolved. And with the House and Senate on break this week, that could be a little while. Lawmakers remain at odds over the terms of a DHS funding package, with Democrats mandating that ICE and CBP agents don body cameras, unmask wear visible identification and need warrants signed by a judge in order to enter homes. On CBS's Face the Nation, Democratic House Minority Leader Hakeem Jeffries and White House border czar Tom Homan squared off on those proposals.

[E]

Police officers don't use masks. County sheriffs don't use masks. State troopers don't use masks. Why is it that ICE agents who are untrained are being unleashed on American communities with this type of lawlessness, violence and brutality? They are wearing badges. They're wearing placards to identify what agency they're from, but their name isn't on it, right? Where's the mask? I don't know of another law enforcement agency in the country that has an 8,000% increase in threats.

[B]

That figure Homan cited is from a DHS press release last month. Just two months after taking up the job, New York City Mayor Zoran Mamdani is facing his biggest test to date. Today he must present a balanced budget for the coming fiscal year, which kicks off months of wrangling with the City Council and with a predicted budget shortfall of up to $12 billion over the next two years, Journal reporter James Finelli says it's a safe, significant challenge for a mayor who vowed not to cut social programs.

[F]

The mayor came into office on a very ambitious affordability agenda, and 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. But there has been a bright spot already. His administration has been able to find savings. They are projecting higher tax revenue from Wall street bonuses higher than they previously thought. So they think that they'll be able to shrink that budget deficit from 12 billion down to 7 billion. And more importantly, the mayor is seeking to get state lawmakers to approve some tax increases. One, he wants to tax millionaires at a higher rate and two, he wants to increase the tax rate on corporations.

[B]

The city covers more than two thirds of its budget from tax revenue and relies on state and federal funding for the rest. And Civil rights leader Reverend Jesse Jackson died this morning at the age of 84. A gifted public speaker, Jackson was known for fiery rhetoric, often advocating for the interests of working people and especially minorities. Jackson twice sought the Democratic nomination for president, becoming the first black man to wage a nationwide campaign for a major party's endorsement. Coming up, Goldman Sachs follows other Wall street giants in scrapping DEI criteria for its board. And it's not just you. This winter is worse and weirder than usual. We'll tell you why after the break.

[A]

Still running global payroll like a relay race, deal replaces fragmented payroll vendors with one global system. No third parties hire and pay teams in 130 plus countries with in house local experts and white glove delivery and deal plugs into what you already use. Workday SAP Netsuite operate like a local everywhere. Visit d e l.com WSJ that's d E-E-L.com WSJ.

[B]

Hotelier Thomas Pritzker is retiring as the executive chairman of Hyatt after recently released documents detailed his ties to convicted sex offender Jeffrey Epstein. Pritzker is a member of one of Chicago's most prominent families, which includes Illinois's current governor and a former US Commerce secretary. In a statement, Pritzker said he exercised terrible judgment in maintaining contact with Epstein and Ghislaine Maxwell and in a memo to the board added that his departure would allow for a proper handoff at Hyatt. The company has named its president and chief executive as board chair Meanwhile, Wall Street's DEI retreat is continuing, with Goldman Sachs saying it will no longer consider race, sexual orientation and other diversity factors when screening potential board candidates. We exclusively report that the decision follows a behind the scenes request from a conservative activist nonprofit that owns a small stake in the bank urging it to drop the DEI policy and requesting the proposal be circulated to shareholders. Goldman's board is expected to finalize the DEI walkback this month, and we've learned that activist Elliott Investment Management has built a more than 10% stake in Norwegian Cruise Line and is planning to push for changes at the world's fourth largest cruise operator. Its shares are among the worst performing in the S&P 500 over the past five years, with its stock remaining near Covid era levels despite the recovery in travel demand and between extreme temperatures, record snowfall and surging energy use, if it feels like this winter has been an especially tough, you're not wrong.

[C]

This winter is what many meteorologists have been calling a cool east, warm west pattern. Essentially, we have two different winters going on.

[B]

Reporter Carl Churchill covers climate for the Journal.

[C]

We have a abundance of snowfall out east, but a unusual lack of snow out west. Many Americans on the east coast have not experienced a winter quite like this in a long time. We have seen record high housing heating costs. Much of this extreme cold has headed very far south where homes and infrastructure are not built to handle extreme cold. And especially what we saw in January this year was a large amount of what is called ice glaze accumulation and that can lead not only to widespread damage to vegetation, but also cause power outages. On the bright side, many people on the east coast are getting to experience an abundance of snow that they haven't seen in quite a long time, especially east coast ski resorts.

[B]

Well, whether you're thrilled about hitting the slopes, frustrated about your soaring heating bill, or just fed up with slipping on the ice, let us know. We left a link in our show notes and that's it for what's news for this Tuesday morning. Today's show was produced by Daniel Bock and Hattie Moyer. Our supervising producer is Sandra Kilhoff and I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Until then, thanks for listening.

[G]

Trading at Schwab is now powered by Ameritrade, unlocking the power of thinkorswim, the award winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on thinkorswim desktop with robust charting and analysis tools all while you uncover new opportunities with up to the minute market news and insight. ThinkOrSwim is available on desktop, web and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn [e-mail] trading.