As the crisis unfolds, the situation in the electronics sector could worsen, according to Phison’s CEO, Pua Khein-Seng. He disclosed that a significant number of consumer electronics firms might face closure or withdraw from certain product lines by the conclusion of 2026 due to the escalating AI memory crisis. The core revelation is that there will be a continual imbalance in memory supply and demand until at least 2030.

This is evident as various manufacturers are reportedly requesting three years of upfront payments for memory supplies, an unprecedented occurrence within the industry, indicating a strong seller’s market.

“Memory supply and demand imbalances will persist until 2030, with severe shortages of DRAM and NAND Flash. Major electronic producers are working within a seller’s market with unprecedented payment terms. Consumer electronics could see significant numbers of closures…”

The predictions indicate a drastic reduction in production across various sectors, with estimates suggesting a drop of 200-250 million units in mobile phone production and substantial reductions in PC and TV assembly lines.

For more details, view the full interview here.