The Tech Shakeup Why Your Next Phone Might Be Hard to Find by 2026
The global electronics market is heading toward a massive wall. Phison Electronics CEO Khein Seng Puah has issued a stark warning that many hardware manufacturers will vanish by the end of 2026. The cause A devastating memory shortage drives component prices to record levels which prevents smaller companies from acquiring materials needed for production.
The core of the problem isnt a lack of factory space; its a shift in priorities. Memory giants are moving away from consumer gadgets to feed the high profit server and AI markets. The crisis is developing through these stages
- The NVIDIA Factor New AI accelerators, like NVIDIAs Vera Rubin, require massive SSDs over 20 TB each. These systems alone could swallow up 20% of the worlds total NAND production.
- Upfront Payments Manufacturers are now demanding years of payment in advance to secure supply, leaving smaller brands unable to compete with tech giants.
- Price Spikes In just one year, the cost of a basic 8GB eMMC module has skyrocketed from $1.50 to nearly $20. For car manufacturers, those same modules are hitting $30.
This problem extends beyond corporate boundaries because it will transform retail operations. Phison predicts that smartphone production could drop by as many as 250 million units. We expect the same market contraction to occur in the PC and TV sectors. Companies that cannot secure memory modules will be forced to exit the market or shut down entirely.
If these predictions hold true, the era of "cheap and disposable" tech is coming to an end. Here is what users should expect
- Higher Prices The cost to acquire new smartphones and laptops will experience a significant increase because manufacturers will transfer their costly memory expenses to customers.
- The Rise of Repair Because new devices will be harder to find and more expensive to buy, people will keep their current gadgets longer. Repairing an old phone will soon be a much more attractive option than hunting for a new one.
The consumer tech industry faces its greatest challenges in decades because the AI gold rush consumes global resources. If you want to upgrade your devices, you should do so before supply lines become more restricted.
