Memory chip shortage threatens electronics manufacturers with bankruptcy by 2026
The head of Taiwanese chip maker Phison, Pua Hainshen, stated that due to a shortage of memory chips, many household appliance and electronics manufacturers could go bankrupt by 2026, leading to a significant reduction in product output.
According to Pua, in 2026, the memory chip shortage will cause smartphone production to drop by 200-500 million units, along with a considerable decline in the manufacture of TVs and computers. He also noted that the shortage of memory chips will persist at least until 2030. The situation has deteriorated to the point that chip manufacturers now require prepayment for orders three years in advance. Major companies like Samsung, Micron, SK Hynix, and Kioxia are already investing in expanding production capacity to meet the growing demand, especially given the high domestic demand in China.
This supply crisis in memory chips could fundamentally reshape the electronics market, causing production disruptions and price increases that will affect both companies and end consumers.
