Microsoft Raises Windows 11 OEM License Fees Up to 10 Percent

Microsoft has raised the cost of Windows licenses for PC manufacturers by 7 to 10 percent, according to a report from Taiwanese publication United Daily News, a sharp departure from the single-digit increases that have been the norm in recent years. The move compounds an already difficult environment for hardware makers facing surging memory chip prices. One PC brand executive told the publication that while Microsoft typically raises OEM licensing fees by low single digits each year, the latest increase that took effect in July is significantly higher than previous years. The exact increase varies by manufacturer, as Microsoft charges different OEMs different rates for Windows licenses. The price hike comes at a particularly painful time for the PC industry. DDR5 memory prices have surged throughout 2026, with server DRAM and high-density RDIMMs absorbing most of production capacity. NAND flash output for the entire year is already committed, according to industry estimates. TrendForce recently downgraded its full-year server shipment growth forecast from 20 percent to 13 percent, citing 35 to 40 week lead times for power management ICs and baseboard management controllers needed to assemble complete servers. For consumers, the pressure is building from multiple directions. The Microsoft license increase will be absorbed by OEMs and likely passed along through higher laptop and desktop prices, even as memory costs already force manufacturers to raise retail prices. Consumer license prices for Windows 11 remain unchanged at 99 dollars for Home and 199 dollars for Pro, but the total cost of building and buying a new PC is expected to climb further. The broader semiconductor supply crunch, driven by insatiable demand for AI training and inference hardware, has created a bottleneck that reaches far beyond data centers. Nvidia has booked an estimated 800,000 to 850,000 wafers of TSMC advanced packaging capacity for 2026, consuming over half the total output and leaving AMD, Broadcom, and Google TPU programs competing for the remainder. Industry analysts say the combined effect of memory inflation and now higher OS licensing costs could dampen PC market recovery just as AI-powered devices begin driving a new upgrade cycle. Sources: Windows Central, TrendForce, United Daily News