Will rising memory chip prices trigger large-scale layoffs in the consumer electronics industry?

Industry insiders warn that rapidly rising prices for computer and mobile memory could place severe financial pressure on smartphone and electronics manufacturers. According to Yixiu Technology founder Wang Teng Thomas, memory costs are expected to keep climbing in the near term, potentially forcing companies to cut expenses — including workforce reductions. Executives at Xiaomi have also acknowledged the prolonged surge in component costs. Company president Lu Weibing described the current cycle of price increases as unusually long and suggested that the supply imbalance may persist until 2027 due to the time required to expand semiconductor production capacity. Analysts attribute the shortage largely to the global boom in artificial intelligence computing, which has sharply increased demand for memory chips. The uncertainty lies in whether companies will absorb the higher costs or respond with major layoffs across the industry.