A top memory industry executive has warned about a growing shortage of RAM and other memory chips. He said this shortage could lead to some tech products being discontinued and might even force some companies to close if the problem continues.
Phison CEO cautions on industry impact
In a televised interview, Phison CEO Pua Khein-Seng said the ongoing RAM and memory shortage could seriously affect tech manufacturers. He agreed that companies struggling to get enough memory parts might have to stop making some products or even shut down, especially if things do not get better by the second half of 2026. The Verge reported these comments after reviewing a translated version of the interview.
The main reason for the shortage is the rising demand from artificial intelligence data centers, which use a big part of the world’s memory supply. This has caused memory prices to jump sharply, with some prices tripling, quadrupling, or even going up six times in recent months.
Supply chain squeeze and market concentration
Memory supply remains tightly concentrated. Three companies control 93 % of the global DRAM market, and they have been slow to expand production aggressively for fear of creating overcapacity. This concentration has intensified competition for memory chips across sectors, from consumer electronics to gaming and larger enterprise systems.
Phison’s CEO also said that with less memory available, people might start fixing their old devices instead of buying new ones because parts are harder to find.
Broader shortage tied to AI demand
TechBuzz shared that the memory shortages are part of a bigger global problem caused by the rapid growth of AI infrastructure. The rush to build AI data centers has made memory chips harder to get and pushed prices up, as manufacturers focus on high-end parts for AI processors, leaving less for regular products like PCs and smartphones.
This situation has affected both DRAM for RAM and NAND flash storage. Some executives say the market is so tight that memory makers now ask for long-term prepayment because demand is higher than what they can supply. Phison CEO’s comments suggest that many system vendors might have to stop making certain products or could go out of business if they cannot get enough memory.
Implications for tech hardware and prices
The ongoing memory shortage has already affected how many products are available and how much they cost. Reports show that higher memory prices are making consumer devices more expensive and could slow down or cut shipments of laptops, smartphones, and gaming consoles. Analysts say that increased memory use by AI is a main reason for the shortage in traditional markets.
Executives from major PC manufacturers have publicly warned that memory chip shortages could pressure sales across the tech sector and lead to deeper supply constraints if production cannot keep pace with demand.
Risk of disruption continues
Some memory makers are working to increase capacity, but the gap between supply and demand, especially for parts needed for AI, does not look like it will be fixed soon. The Phison CEO’s warning shows how important memory supply is for the whole tech industry and points to the risk of major problems in hardware production and company survival if shortages last into 2026 and beyond.
