What is chipflation? Singapore laptops +26%, CPI PCs −2%

Singapore makes memory chips, ships them out at record prices and then pays more for the laptops that contain them. The official price index tells a calmer story than the shop shelves. Here is how the two fit together.

What is chipflation?

Chipflation is the rise in prices of memory-heavy devices after AI servers take up most of the world’s new memory output. Cloud companies order high-bandwidth memory (HBM) and server DRAM in bulk, chipmakers prioritise those orders, and the standard DRAM and NAND flash used in laptops and phones run short.

TrendForce expected conventional DRAM contract prices to climb another 13–18% and NAND 10–15% in the third quarter of 2026. The Straits Times described the local effect in a September headline: PC prices here surge as growing AI infrastructure competes for components.

How much have laptops and PCs gone up in Singapore?

The clearest same-product increases came from Apple and Sony.

Visual guide

How much have laptops and PCs gone up in Singapore?

1. MacBook Air 13-inch

   Before

   S$1,499

   After

   S$1,899 (two rises)

   Change

   +26.7%

2. iPad Air

   Before

   S$899

   After

   S$1,149

   Change

   +27.8%

3. PS5 digital

   Before

   S$669

   After

   S$764

   Change

   +14.2%

4. 1TB SSD

   Before

   S$149

   After

   S$328

   Change

   about 2.2×

Product	Before	After	Change
MacBook Air 13-inch	S$1,499	S$1,899 (two rises)	+26.7%
MacBook Pro 14-inch	S$2,999	S$3,499	+16.7%
iPad Air	S$899	S$1,149	+27.8%
PS5 digital	S$669	S$764	+14.2%
32GB DDR5 memory kit	S$195	S$763	about 3.9×
1TB SSD	S$149	S$328	about 2.2×

Apple’s first rise in March was put down to “surging memory chip prices” (Mothership); the second, on 26 June, took the MacBook Air to S$1,899 and left iPhones untouched (HardwareZone). PS5 prices rose on 1 May (Mothership). Across the whole market, IDC data reported by The Straits Times via Malay Mail put the average mainstream laptop at about S$1,650 in the second quarter, up from S$1,300, with gaming desktops up 39%.

Does Singapore’s CPI show chipflation?

Hardly. The CPI line for computers has been negative all year.

CPI item, year on year	August 2026	Earlier in 2026
Information processing equipment (computers)	−2.0%	negative every month
Mobile phone equipment	+2.1%	peak +9.2% in May
Information and communication	−4.3%	telecom services −5.6%
All items	+2.3%	—
MAS Core	+2.2%	—

Singapore CPI for information processing equipment, August 2026 year on year (SingStat Table M213781)

Phones did react: the index moved from −6.2% in January to +9.2% in May before easing to +2.1% in August (SingStat). Computers did not. The MTI’s August release makes no mention of chips, and no official note explains why the computer index fell while the average selling price rose. Two things are known: computers are a small part of the household basket, and a price index follows the same items over time, while an average selling price also shifts when buyers move to different models.

Is Singapore a seller or a buyer of chipflation?

Mainly a seller.

Indicator	Value	Period
Non-oil domestic exports	+46.2%	August 2026
Electronics NODX	+131.8% (ICs +90.9%, PCs +237.9%)	August 2026
Electronics manufacturing output	+33.8%	2Q 2026
GDP deflator	+6.1%	2Q 2026
Manufacturing deflator	+14.1%	2Q 2026
Export deflator	+8.5%	2Q 2026

August’s export figures were driven by chips and PCs. Singapore also makes 98% of Micron’s NAND flash, and Micron is investing US$24 billion in a new NAND fab here. In the MTI statistical appendix, nominal GDP grew 12.4% in the second quarter against 5.9% in real terms, a GDP deflator of 6.1% that is well above consumer inflation. In its July statement, MAS said AI-related investments “have remained robust, underpinning strong production and trade of IT-related goods”. The higher chip prices show up as factory income, not as a jump in the cost of living.

Is chipflation caused by money supply?

No.

Indicator	Year on year	Period
M2	+4.02%	June 2026
CPI all items	+2.3%	August 2026
Real GDP	+5.9%	2Q 2026

Money grew a little faster than prices but slower than the economy’s nominal output. The price pressure sits in memory supply, which neither the S$NEER policy band nor local interest rates can expand. For how M2 and consumer prices diverge over longer periods, see M2 and CPI as two measures of value.

How long will chipflation last?

The local view is at least until 2028. IDC analyst Ho Jin Wei told The Straits Times he does not expect meaningful easing in PC prices before 2028. Micron’s Singapore fab is due to begin output in the second half of 2028. OCBC’s Selena Ling listed memory prices, advanced packaging demand and AI server orders as the indicators to watch (IBTimes Singapore).

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