Phison CEO K.S. Pua warned of the serious consequences of a prolonged memory shortage, stating that some companies in the consumer electronics market may simply disappear. According to him, the shortage of DRAM and NAND can lead to the "destruction" of entire segments of the industry.
In an interview with Chinese media, Pua spoke about the current state of DRAM and NAND supply chains. According to contract manufacturers, the shortage may last until 2030, and in the worst case, it may last for a decade. Moreover, factories are already demanding prepayment for capacity three years in advance — an unprecedented practice for the industry. In fact, the market is now completely on the side of sellers.
According to the head of Phison, large technology companies are not yet fully aware of the scale of the long-term consequences of the memory shortage for their product lines. At the same time, demand for NAND and DRAM is expected to reach a historical maximum this year and remain high until the end of the decade.
The consumer segment may be particularly hard hit. Pua predicts that from the end of this year until 2026, many system manufacturers will be forced to close or abandon certain areas due to the impossibility of ensuring memory supplies. In the second half of 2026, according to his estimate, a large number of brands with low margins will leave the market, and budget devices may almost disappear. This will create a "vacuum" in the market until supply recovers and growth resumes.