Why AI Is Killing Cheap Smartphones

Your next laptop or smartphone is going to cost you more than expected, thanks to the AI boom.

AI is hijacking the world’s chip factories. While the AI market accounts for only 2% of total chip volume, it now commands a staggering 50% of global semiconductor revenue, forcing manufacturers to prioritize high-margin AI orders over the electronics in your pocket. 

MSIA President Datuk Seri Wong Siew Hai joins Enterprise Explores to explain why entry-level $500 laptops and sub-$200 smartphones are becoming the "first casualties" of this silicon squeeze. We also unpack how Malaysia must pivot from "assembly and test" to the "innovation brain" of advanced 3D packaging to survive this high-stakes industrial shift.

Learn More About:
The 2% Paradox: Why a tiny fraction of global chip volume generates half the industry's revenue, deprioritising your next phone

The Entry-Level Casualty: Why sub-$200 smartphones and $500 laptops are vanishing as brands extend refresh cycles to 18 months to absorb component price spikes.

Apple’s Secret Weapon: How massive scale, long-term supply contracts, and custom unified silicon allow one giant to dodge the spot market volatility killing its rivals.

Malaysia’s Two-Speed Risk: The danger of being trapped in low-margin "backend" work while global value shifts toward advanced packaging and AI integration.

The Stacking Revolution: Why technologies like Through-Silicon Via (TSV) and 3D packaging are the new frontiers for Malaysia’s National Semiconductor Strategy.

See omnystudio.com/listener for privacy information.