Phison's CEO has discussed the future of the consumer tech market, claiming that, amid shortages, several businesses dependent on DRAM will be destroyed.
Phison's CEO Says that Enterprise Demand Hasn't Been Fully "Factored In", Showing a Gloomy Future for Consumers
It appears that company executives have now started to factor in the long-term effects of the memory shortages, and Phison's CEO has flashed warnings that the markets wouldn't have anticipated at all. In an interview with Chinese media (via QQ_Timmy), CEO K.S. Pua discussed the current conditions of the DRAM and NAND supply chains, and based on his comments, it appears the entire industry is in for significant aftershocks. One of the major revelations of the interview was that foundries anticipate shortages through 2030, indicating that sellers are currently demanding a 3-year prepaid payment for capacity.
Foundries are demanding 3 years of prepaid payment (unprecedented in the electronics industry), with the seller's market at an all-time high. Internal estimates from foundries suggest shortages will persist until 2030, or even potentially for a decade with no end in sight.
- Phison's CEO
There's no doubt that, in its current state, Big Tech isn't entirely certain about the profound impact memory shortages will have on its product lineups, and the industry is still calculating the possible consequences. Phison's CEO also states that the company anticipates NAND/DRAM demand to reach an all-time high this year and remain sustained through the end of the decade as well. More specifically, the official also mentions that many "consumer segments" will be disrupted, potentially wiped out of business, simply because AI needs too much DRAM.
From year-end to 2026, many system companies will shut down or exit product lines due to inability to secure memory. In the second half of 2026, large numbers of low-margin brands will exit, low-end products will disappear, creating a market vacuum until supply recovers and growth explodes again.
If you think the memory shortages are already intense enough, wait till NVIDIA's Vera Rubin AI infrastructure hits the market, as, according to Phison's CEO, we are expected to see a rise in NAND demand that suppliers won't be able to sustain at all. With Rubin's ICMS platform along with high-spec memory requirements, the lineup alone could gobble up more than 20% of global NAND production. Phison's CEO says 'enterprise demand' hasn't been fully factored in yet, and it will explode.
It is indeed disappointing to see the current state of the DRAM/NAND industry, but given the pace of the hyperscaler buildout, major executives are now factoring in a 'product winter', driven by supply cutbacks and delay of retail-focused launches.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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