Phison CEO Khein-Seng Pua warned in a reported February 2026 interview that shortages and rising prices for DRAM and NAND could leave smaller electronics companies unable to secure memory or finance the inventory they need. His prediction that some firms could fail or abandon products is a forecast—not evidence that those outcomes have already happened.
What Phison’s CEO predicted—and what is known
Tom’s Hardware reported Pua’s remarks from an interview with Era News. He said mobile and automotive companies were asking suppliers for flash memory and warned that smaller businesses might not get enough supply. He described consumer electronics as being in serious trouble and predicted many “victims” in the second half of 2026.
Pua’s language was emphatic, including an extreme expression about how painful the year could become for clients. Those comments describe his assessment, not an independently verified forecast of how many companies will fail. The sources cited here do not establish a count of electronics firms that have gone bankrupt or confirm which businesses will exit the market.
What the shortage could mean for devices and manufacturers
AI data centers are competing for memory alongside consumer-device makers. Axios reported that companies including Nvidia, Microsoft and Google are absorbing supply, increasing pressure on the amount available to other buyers and on prices. The squeeze can affect businesses even if chips remain available: a smaller manufacturer may be unable to reserve the right type of memory, pay for it upfront, or absorb the extra cost without damaging already-thin margins.
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The potential consequences include higher prices, delayed launches, fewer units shipped, lower memory or storage configurations, and canceled product lines. Axios cited Neumonda executive vice president Marco Mezger saying that tighter memory supply raises prices, shifts launches and compresses margins, with smaller firms more vulnerable than major technology companies. Mezger said this did not mean store shelves would immediately go empty; he said wider consumer effects could appear within six to 12 months if AI demand continued at its then-current pace. That was a conditional outlook, not a guaranteed timetable.
Phones and TVs
Pua said the shortage could lead to 100 million to 250 million fewer smartphones being produced. That is his reported estimate of potential production cuts, not a confirmed final count. Separately, TrendForce forecast more than 190 million fewer TV shipments in 2026, as cited by Axios. These are distinct forecasts from different sources; neither figure establishes how much prices will change or which models will be affected.
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Axios reported that modern smart TVs typically contain 1GB to 8GB of RAM. Memory constraints could therefore affect TV production costs and launch schedules as well as phones and computers. A higher component cost does not automatically translate into an equal retail-price increase: manufacturers can also absorb some cost, change specifications or reduce production.
DRAM and NAND are related, but serve different roles
| Memory type | What it does in devices | What the reported evidence establishes |
|---|---|---|
| DRAM | Provides working memory used while a device or server is operating. | The reports describe AI demand competing for memory, including DRAM, but do not give a separate DRAM price increase or a quantified consumer-device shortage. |
| NAND | Provides persistent storage in products such as SSDs and flash-memory modules. | Pua said NAND prices had risen 50% overnight. That is his reported claim, not a broad market price index or a stated recurring rate. He also cited an 8GB eMMC module rising from US$1.50 to US$20; the report does not establish that as a typical market price for all modules. |
These distinctions matter when considering a particular purchase. A shortage affecting NAND storage does not by itself show that every RAM kit will rise by the same amount, and one reported module price does not establish the price of an SSD or a phone. The available figures are signals of stress, not a complete price tracker for either category.
Why smaller manufacturers may be more exposed
Memory shortages create a financing and allocation problem as well as a physical-supply problem. Large buyers may have stronger supplier relationships and more cash to reserve inventory. Smaller brands with thin margins can be squeezed if suppliers require earlier payment, if they cannot secure long-term allocations, or if redesigning a product for a different memory component takes too long.
Phison’s own reported figures illustrate the working-capital pressure, though they should not be treated as a measure of the whole electronics industry. PC Gamer reported that Phison’s inventory increased from NT$35.6 billion at the end of 2025 to NT$50 billion at the end of February 2026. The company’s board also approved a plan for a US$400 million to US$500 million syndicated loan to support inventory and research and development. Approval of a financing plan does not establish that the full amount was borrowed or that every company can access comparable financing.
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PC Gamer, citing DigiTimes, reported that enterprise SSDs accounted for 30% of Phison’s Q1 2026 revenue. That figure is Phison’s reported revenue mix for that quarter, not the share of the global memory market going to enterprise customers. Together with Pua’s report that Phison had long-term agreements with two DRAM suppliers and six NAND suppliers while negotiating prepayment plans, it helps explain why supplier access and cash reserves can influence who gets components.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What this could mean for your next electronics purchase
The reports point to possible price and availability pressure, but they do not establish how much a specific laptop, phone, television, SSD or RAM kit will cost, or when a particular product will become scarce. If you need a device or component soon, compare current prices and stock for the exact model and capacity you intend to buy. Avoid assuming that buying immediately will save money: the cited reports do not provide a dependable retail-price forecast or a confirmed end date for the shortage.
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- If you need a replacement now: prioritize compatibility, capacity and your budget. A discount on an incompatible or unnecessarily large product is not a saving.
- If your purchase is optional: set a price you can afford and check availability again when you are ready. The evidence does not support a specific wait-or-buy date.
- If you are buying a complete device: compare the actual configuration and warranty, not just the advertised model name; memory and storage capacity can differ across versions.
How to read the 2026 warning
Pua’s warning is a plausible risk scenario: AI-related demand can intensify competition for DRAM and NAND, while higher prices and advance-payment demands can strain smaller companies. The reported forecasts for phones and TVs add to the signs of pressure, but forecasts are not confirmed production results, and the cited reporting does not verify a wave of electronics-company bankruptcies. It also does not establish a single independently verified date for when the global NAND shortage will end.
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