Qualcomm has informed its customers that it will raise chip prices by a double-digit percentage for all shipments after September 1, according to Bloomberg.
The company cited rising supply-chain costs and what it described as historic shortages across the tech industry, affecting everything from phones to supercomputers and cars.
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Qualcomm relies heavily on TSMC, the world's largest contract chipmaker, where competition for capacity is fierce. Apple and Nvidia are also major TSMC customers.
Qualcomm's chips are used in smartphones from nearly every major brand, as well as wearables from companies like Meta, so the price hike is expected to ripple across many products.
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Analysts have noted that memory shortages have already limited smartphone production this year. TSMC has warned that supply constraints may persist even as it expands capacity.
Samsung and Intel have advanced manufacturing capabilities but have not fully matched TSMC's scale or customer trust for the most advanced chips, leaving Qualcomm with limited short-term alternatives.
This price increase highlights how AI-driven demand is affecting everyday consumer electronics.
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Phone makers and device companies must decide whether to absorb the higher costs or pass them on to consumers.
Multiple smartphone brands have already adjusted prices, with the impact most noticeable in the value-oriented segment.
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The industry will be watching how they respond as the September deadline approaches.
