The $70 Chip War: Why Google is Firing Execs and Apple is Bracing for a 230% Price Surge

As of 29 December 2025, technology firms including Google and other giants are sending senior procurement staff to South Korea to negotiate with memory chip suppliers, aiming to secure more memory supply for AI efforts. The talks involve Samsung and SK Hynix, with Microsoft, Google, and Meta among those pressing for long-term agreements as price is now less central than the supply–demand imbalance.

Google is reported to have dismissed a procurement executive over concerns about securing advance agreements with memory suppliers. Apple faces expiry of long-term agreements with key memory suppliers in January next year, potentially forcing it to pay premiums of up to 230% for LPDDR5X memory chips, a cost increase that could ripple into product pricing.

Hyperscale data centre operators rely on high-bandwidth memory for AI accelerator cards, and suppliers such as SK Hynix and Micron have reportedly resisted significant increases in HBM production. Overall, the squeeze on memory supplies is shaping strategic choices for chip planning across the sector.