Qualcomm to hike processor prices by double digits amid supply chain strain

Qualcomm is preparing to increase processor prices by double-digit percentages for devices shipped after 1 September 2026, according to reports from Bloomberg. The chipmaker has notified its customers of the upcoming changes via letters, stating that it can no longer absorb the rising costs of components from its suppliers.

The decision follows significant supply chain constraints at manufacturer TSMC, where Qualcomm’s chips are primarily produced. The broader technology sector is currently grappling with memory and component shortages driven by immense demand for artificial intelligence data centre buildouts. These factors have increased production costs and reduced the ability of client companies to manufacture sufficient devices.

Qualcomm, a dominant supplier in the smartphone processor market, powers most flagship Android models. Its technology is integrated into Samsung’s Galaxy series, including the Galaxy Z Fold 8 Ultra, Fold 8, and Flip 8, as well as Microsoft CoPilot+ PCs and Meta’s Ray-Ban smart glasses. The price adjustments could have a substantial impact on retail pricing across these brands and device categories.

Despite the operational headwinds, the company’s financial performance has shown resilience in recent quarters. Qualcomm posted revenue above forecasts for the second quarter of 2026, even as sales volumes reportedly declined this year due to clients’ inability to produce enough devices amidst the ongoing shortages.

The company stated that it had attempted to source alternative components from new suppliers before deciding to pass the increased costs on to its clients. While the exact percentage of the price increase has not been specified, the double-digit hike signals a shift in how major chipmakers are managing inflationary pressures and supply constraints in the current market environment.