The component crisis dubbed 'RAMageddon' will most likely have major consequences, multiple industry players warn. It may lead to product shortages and even bankruptcies this year.
The RAM crisis is already affecting game consoles, which were also hit hard by chip shortages during the pandemic.
However, this appears to be just the beginning. When RAM is in short supply, production costs rise, and manufacturers must compete fiercely for the scarce components. Who will be the most successful in securing RAM and storage modules: TV makers? smartphone brands? PC manufacturers? Console makers? Car companies?
Sales expected to drop this year
Citing research firms IDC, Omdia and Counterpoint, The Verge reports that sales of smartphones, consoles, computers and other products are expected to decline this year. Simply put, there is not enough RAM available to sustain production.
The smartphone market is expected to shrink by up to 8% in 2026 compared to 2025. The PC market could decline by 5-9%, while prices may rise by as much as 30%.
Qualcomm, which supplies chips for smartphones, says the situation is driven entirely by shortages of memory chips, including both RAM and NAND. Qualcomm's CFO adds that several manufacturers have already scaled back their production plans.
TV prices are at a historic low right now, but that may not last in the coming months and yearsWill it lead to bankruptcies?
Phison, which produces controllers for memory chips, warns that RAMageddon could force multiple smaller electronics manufacturers into bankruptcy as early as the second half of 2026, according to Tom's Hardware.
The concern is that smaller brands will not only face reduced deliveries of RAM and NAND but may be unable to secure components at all, as larger manufacturers negotiate better terms with suppliers.
Phison expects the crisis to hit smartphone makers hardest, but also PC manufacturers and to some extent TV makers. TVs do not rely on the latest generations like PCs and smartphones, but storage module costs are also rising rapidly. Phison says, for example, that an 8GB eMMC storage module increased from $1.50 to $20 in 2025 alone – 13 times more expensive – and they remain difficult to obtain, even for Phison.
Buy a new TV now or wait?
Shortly after the New Year, Samsung warned that TV prices could rise. Since then, signals from across the industry have only grown more pessimistic.
Most of a TV's production cost relates to the display panel and backlight (LED, miniLED, QLED, RGB LED), but memory chips are essential in all TVs. Without RAM and storage modules, TVs simply cannot be manufactured, which could reduce supply and drive up prices for the models that do reach the market.
If you are planning to buy a new TV in the near future, it may therefore be worth considering making the purchase soon.
- Source: The Verge, Tom's hardware
