What is chipflation? Malaysia E&E exports +66%, CPI 1.9%
Chipflation is the AI-driven memory shortage lifting gadget prices. Apple raised Malaysian MacBook prices and E&E exports jumped 66.5%, yet CPI was 1.9%.
Malaysia tests, packages and ships the chips that AI servers are fighting over, and it is getting paid more for them. The same shortage has made RAM, MacBooks and consoles dearer in Malaysian shops. Which effect is bigger for the economy? The data point one way.
What is chipflation?
Chipflation is the rise in consumer electronics prices that follows when AI servers take up most new memory supply. Hyperscalers buy high-bandwidth memory (HBM) and server DRAM in bulk, memory makers switch capacity to them, and the standard DRAM and NAND used in phones and laptops runs short.
theSun used the word in September under the headline “Rise of ‘chipflation’: Why your next phone may cost more”. Contract prices are still rising: TrendForce expected conventional DRAM to climb another 13–18% and NAND 10–15% in the third quarter of 2026.
How much have gadget prices risen in Malaysia?
How much have gadget prices risen in Malaysia?
- MacBook Neo
- Before
- RM2,499
- After
- RM2,999
- Change
- +20.0%
- MacBook Air 13-inch (M5)
- Before
- RM4,699
- After
- RM5,499
- Change
- +17.0%
- PS5 Digital Edition
- Before
- RM2,069
- After
- RM2,499
- Change
- +20.8%
- 32GB DDR5 RAM kit
- Before
- RM700
- After
- RM2,000
- Change
- about 2.9×
Selected entries from the table below. Its dates, units, definitions and limitations still apply.
| Product | Before | After | Change |
|---|---|---|---|
| MacBook Neo | RM2,499 | RM2,999 | +20.0% |
| MacBook Air 13-inch (M5) | RM4,699 | RM5,499 | +17.0% |
| MacBook Pro 16-inch (M5 Max) | RM15,999 | RM18,499 | +15.6% |
| PS5 Digital Edition | RM2,069 | RM2,499 | +20.8% |
| 32GB DDR5 RAM kit | RM700 | RM2,000 | about 2.9× |
Apple’s 26 June increase was put down to “rapidly rising memory and storage component costs” (Lowyat.NET). PS5 prices rose on 1 May (Lowyat.NET), and the RAM prices are shop quotes reported by The Star in March. The iPhone shows the memory link most neatly: the iPhone 18 Pro 256GB kept the RM5,499 price of the 17 Pro, while the 1TB went from RM7,499 to RM8,499 and the 2TB rose by RM2,000 (SoyaCincau).
Does Malaysia’s CPI show chipflation?
Only faintly.
| CPI item, year on year | August 2026 |
|---|---|
| Video game consoles and software | +5.8% |
| Information and communication | +2.6% |
| Computers, laptops and tablets | +1.8% |
| Mobile phone equipment | −1.1% |
| Headline CPI | +1.9% |
Malaysia CPI for computers, laptops and tablets, August 2026 year on year (DOSM)
The information and communication group was lifted mainly by mobile communication services (+6.4%), not by devices (DOSM). In its September statement, Bank Negara pointed to energy as the inflation risk and did not mention gadget prices. Devices are a small part of the household basket, so even a 17–20% jump on selected models barely moves the total.
Is Malaysia a seller or a buyer of chipflation?
A clear seller.
| Indicator | Value | Period |
|---|---|---|
| E&E exports | +66.5%, 48.4% of total exports | August 2026 |
| Integrated circuit exports | +97% | August 2026 |
| SSD exports | +468.8% | August 2026 |
| Total exports | +45.5% | August 2026 |
| Nominal GDP | +11.1% | 2Q 2026 |
| Real GDP | +6.0% | 2Q 2026 |
| Implied GDP deflator | about +4.8% (calculated) | 2Q 2026 |
August’s trade figures put E&E at almost half of Malaysian exports. The nominal GDP series shows the price effect: 11.1% nominal against 6.0% real implies prices across the economy rose about 4.8%, far above consumer inflation. BNM’s governor said in August that growth was “driven mainly by semiconductors and electronic components… reflecting robust demand from the global AI-driven technology cycle” (Yahoo News).
Is chipflation caused by money supply?
No.
| Indicator | Year on year | Period |
|---|---|---|
| M2 | +6.78% | June 2026 |
| CPI | +1.9% | August 2026 |
| Nominal GDP | +11.1% | 2Q 2026 |
M2 is growing well ahead of consumer prices but behind nominal output, which is expanding on export income. The price rises are specific to memory-heavy goods and come from a supply shortage; a change in the OPR would not add wafers. For the long-run gap between M2 and the CPI, see M2 and CPI as two measures of value.
How long will chipflation last?
Local voices point to 2027. PIKOM president Alex Liew told The Star that “pricing pressures could persist into 2027”. BNM’s governor said the tech cycle “will continue to be strong at least until 2027”. Neither forecast gives a date for shop prices to come back down; they describe how long the shortage and the export boom may last.
The GDP deflator is calculated from DOSM's nominal and real GDP. RAM prices are shop quotes from March 2026, not official statistics. The iPhone comparison spans two generations. No official source explains why the CPI items moved less than retail prices, and this note does not assign a cause.
Compare the same amount by M2 and by prices — The past money calculator converts a past sum into today's ringgit using both M2 and the CPI.
Questions & answers
What does chipflation mean?
Chipflation is a blend of chip and inflation. AI data centres are buying high-bandwidth memory and server DRAM in bulk, memory makers are putting those orders first, and the ordinary memory used in phones, laptops and consoles becomes scarce and dearer. Malaysian media also call it the RAM crunch.
Which gadgets have gone up in Malaysia?
Apple raised the MacBook Neo from RM2,499 to RM2,999 and the 13-inch MacBook Air from RM4,699 to RM5,499 on 26 June 2026. The PS5 Digital Edition rose from RM2,069 to RM2,499 on 1 May. The iPhone 18 Pro 256GB stayed at RM5,499, but the 1TB model is RM1,000 dearer than the iPhone 17 Pro 1TB.
Why is Malaysia's inflation only 1.9%?
Gadgets are a small share of household spending, and the CPI items show little change: computers, laptops and tablets were up 1.8% and mobile phones down 1.1% in August 2026. Bank Negara named energy, not electronics, as the main inflation risk.
Does Malaysia benefit from chipflation?
Yes, as an exporter. E&E exports rose 66.5% year on year in August 2026 and made up 48.4% of total exports, with integrated circuits up 97% and SSDs up 468.8%. Nominal GDP grew 11.1% in the second quarter, well above real growth of 6.0%.
Source
- DOSM — Consumer Price Index, August 2026 ↗
- DOSM — Malaysia external trade statistics, August 2026 ↗
- The Star — Malaysia exports expected to sustain momentum (22 September 2026) ↗
- OpenDOSM — Quarterly GDP at current prices ↗
- Bank Negara Malaysia — Monetary Policy Statement (3 September 2026) ↗
- Yahoo News Malaysia — BNM governor on the AI boom (14 August 2026) ↗
- Lowyat.NET — Apple hikes prices for certain products in Malaysia (26 June 2026) ↗
- SoyaCincau — iPhone 18 Pro Malaysia prices (10 September 2026) ↗
- Lowyat.NET — PS5 price hikes in Malaysia from 1 May 2026 ↗
- The Star — Why RAM prices are surging in Malaysia (16 March 2026) ↗
- theSun — Rise of chipflation: why your next phone may cost more (7 September 2026) ↗
- TrendForce — 3Q26 memory contract price forecast (3 July 2026) ↗
- CapsWindow - Data & methodology ↗