RAM Crunch May Kill Products, Companies

• NAND flash memory shortage driven by dual demand: AI training/inference infrastructure and traditional consumer electronics • eMMC (embedded MultiMediaCard) modules critical for mobile and automotive segments; 8GB variants rose from $1.50 to $20 in 2025[1] • AI inference phase requires persistent storage for model outputs; hyperscalers prioritize memory allocation over consumer OEMs • Phison's role: produces SSD controller chips and flash memory devices; currently operating at <30% fulfillment rate despite supplier status[1] • Memory manufacturers implementing three-year cash prepayment requirements, unprecedented in electronics industry[3] • Structural shift: DRAM and NAND shortages are systemic rather than cyclical, driven by AI datacenter demand displacement[2]

Market consolidation expected from end of 2026 onward: low-margin brands, entry-level products, and smaller OEMs will discontinue product lines or exit markets entirely[2]. High-margin segments (AI servers, hyperscaler infrastructure) will receive priority memory allocation. Consumer electronics segment faces a 'product winter' with reduced smartphone, PC, and TV availability. Companies without strategic long-term supply contracts face existential risk. The memory crisis may rival or exceed the severity of previous DRAM crises, with potential for cascading failures across consumer electronics supply chains[1][2].