Phison CEO Reportedly Believes Electronics Manufacturers Will "Exit Product Lines" by End of 2026
The AI memory crisis is not kind to anyone.
Breakthroughs in AI several years ago led not only to a whole revolution in how companies operate and who (or rather what) they make work for them, but also to a recent memory shortage: some RAM options cost more than modern GPUs due to manufacturers prioritizing AI ventures.
And this is only the beginning, according to Pua Khein-Seng, the CEO of memory-focused company Phison, who reportedly said that many electronics vendors will "go bankrupt or exit product lines due to a lack of memory" by the end of 2026.
That is as reported by 駿HaYaO, an X/Twitter user who provided a summary of the conversation.
"Consumer electronics will see a large number of failures. From the end of this year to 2026, many system vendors will go bankrupt or exit product lines due to a lack of memory. Mobile phone production will be reduced by 200-250 million units, and PC and TV production will be significantly reduced," Khein-Seng believes (thanks, PC Gamer).
He is also said to have mentioned that memory manufacturers are now "demanding three years' worth of prepayment," which is "unprecedented in the electronics industry."
According to 駿HaYaO, Khein-Seng thinks that if NVIDIA's Vera Rubin GPUs ship tens of millions of units, each requiring over 20 TB of SSD, it will consume approximately 20% of last year's global NAND production capacity.
"Samsung, Micron, SK Hynix, Kioxia, Yangtze Memory and other companies have invested, but it takes at least 2 years from announcement to production, and the equipment is in high demand. China's contribution is limited: the new capacity will only account for 3-5% of the global total in the initial stage, which is not enough to fill the 10-20% gap; China's domestic demand is huge, so there will be no outflow of cheap goods."
Alas, the situation doesn't seem too bright at the moment, so be ready to splurge quite a bit on PC components in the near future.
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