Compal, a major assembler of notebooks and PCs, said global shipments of notebooks and personal computers are expected to decline by a low single-digit percentage in 2026, reflecting continued weakness in consumer demand and ongoing market pressures.
Memory Prices Set to Remain Elevated
Compal CEO Anthony Peter Bonadero described the current surge in memory prices as a “true super cycle”—a level of sustained demand and price strength not seen in years. He attributed the price pressure to a booming artificial intelligence (AI) data center build-out, which has tightened supply as memory chip makers prioritize AI server-grade memory.
The world’s three biggest memory producers—Samsung Electronics, SK Hynix, and Micron—have recently said they are struggling to meet demand, as AI server rollouts continue to strain supply.
Bonadero warned that the market could continue to experience the pricing volatility seen toward the end of 2025, especially as these manufacturers focus on high-bandwidth memory (HBM) for AI servers.
Memory Costs Bite Into PC Prices
Memory chips usually represent about 15% to 18% of a PC’s materials cost. However, Compal said this share could rise to 35% to 40%, meaning the price pressure could significantly impact PC margins and pricing.
Despite the challenges, Compal expects its own notebook and PC business to remain flat or see slight growth, supported by its customer mix.
Pivot to AI Servers and Geographic Expansion
Compal is also restructuring to expand its AI-related and AI server business, according to Chairman Ray Chen. The company last year approved a $500 million expansion in the United States, with a new factory in Texas expected to be completed by the second quarter and slated to begin AI server production later in the year.
Compal also noted that customers are seeking more geographically diversified supply, prompting the company to expand capacity in the U.S., Taiwan, and Vietnam.
The warnings from Compal highlight how the AI-driven memory demand surge is reshaping the PC industry, increasing costs, and pushing manufacturers to diversify and adapt to new market dynamics.