The global memory shortage linked to rising AI demand could force a large number of consumer electronics companies out of business by the end of 2026, according to comments attributed to Pua Khein-Seng, CEO of Phison.
In a summary posted on X by user 駿HaYaO, Pua reportedly said that many system vendors may go bankrupt or exit product lines due to limited memory supply. The original interview was conducted in Chinese and is available on YouTube without English subtitles, so the remarks cannot be independently verified verbatim.
According to the translated summary, Pua warned that consumer electronics will experience widespread failures from late this year through 2026. He reportedly said mobile phone production could decline by 200 to 250 million units, while PC and television output would also fall significantly.
The shortage has already driven sharp increases in memory prices, complicating the production of various computing-related devices.
Pua also reportedly addressed the impact of Nvidia’s next-generation Rubin AI GPUs. If tens of millions of Vera Rubin units ship, each requiring more than 20TB of SSD storage, that would consume roughly 20 percent of last year’s global NAND production capacity, excluding additional data storage demand, according to the summary.
The summary further claims that memory manufacturers are now requesting three years of prepayment, a practice described as unprecedented in the electronics sector. Manufacturers are also said to estimate that the shortage could last until 2030 or potentially another decade.
Major memory producers, including Samsung, Micron, SK Hynix, Kioxia, and Yangtze Memory, have announced investments in new capacity. However, bringing new facilities online typically requires at least two years from announcement to production, and equipment remains in high demand.
China’s additional output is expected to account for only 3 to 5 percent of global capacity in its early stages, which would not close a projected 10 to 20 percent supply gap. Domestic demand within China is also described as strong, limiting the likelihood of surplus exports.
The X user suggested that extended product lifespans and increased repairs could be a potential upside of constrained supply. However, overall electronics production continues to grow, with output shifting toward energy-intensive AI servers and GPUs rather than consumer hardware.