Phison CEO Chien Chen Pang warned that acute DRAM and NAND flash shortages could force many budget-focused consumer electronics firms to shut down by 2026. Companies relying on cost-effective components for products like smart TVs, Wi-Fi routers, and set-top boxes face existential risks as memory prices soar and supplies dwindle. For example, an 8 GB eMMC chip used in TVs spiked from $1.50 in early 2025 to nearly $20 today, crippling profit margins for low-cost manufacturers. Supply chain delays compound the crisis: memory orders booked now won’t arrive until 2030, leaving firms with no short-term relief.

While the crisis may ease by the 2030s as foundries expand capacity and Chinese firms re-enter the market, 2026 could mark a turning point for budget electronics. Phison, a key NAND flash controller maker, highlights how component scarcity threatens entire product ecosystems. The sector’s fragility underscores the vulnerability of industries dependent on tightly controlled semiconductor resources.