A grim prediction: Digital device stores will soon go bankrupt in the dark

Electronics manufacturer Phison fears that phone manufacturing alone could collapse with up to 250 million devices due to memory shortages. As a result, consumer electronics companies would have nothing to sell. Phison warns that shops selling devices will collapse around the world by 2026.

CEO of Phison Pua Cain-Seng warned PC Gamerin stated in the interview that in addition to phones, the production of computers and televisions will decrease significantly.

Pua Khein-Seng said Nvidia’s upcoming Vera Rubin AI chips will need an estimated 20 percent of last year’s global NAND production capacity if Nvidia delivers tens of millions of Rubin chips.

According to the CEO, memory manufacturers are now demanding orders from their customers for three years ahead. The hard disk manufacturer Western Digital also said the same, so the shortage does not only concern memories but also storage space.

About memory manufacturers Samsung, Micron, SK Hynix, Kioxia and Yangtze Memory have all announced the construction of new factories and production lines, but it takes approximately two years from the announcement to start production. The new capacity is expected to cover only 3-5 percent of global production, which falls far short of the estimated 10-20 percent shortfall in production compared to demand.