In 2026, the global smartphone market experiences a slowdown in demand, influenced by escalating memory prices and supply limitations. This results in a year-on-year decrease in smartphone SoC (System on Chip) shipments. Consequently, Qualcomm and MediaTek scale down their 4nm/5nm wafer orders at TSMC, with production reductions amounting to 15-20 million chips. AMD capitalizes on this situation by leveraging TSMC's unused capacity to ramp up 5nm production for data center chips, PC processors, and AI accelerators, thereby fueling its revenue growth. The scarcity of memory chips persists in affecting the smartphone industry, as increasing DRAM and NAND costs erode profits for mid-to-low-end smartphones. This leads to the discontinuation or price increases of several budget-friendly models. Looking ahead, the growth of the smartphone chip market will continue to be hindered by a combination of factors, including sluggish demand, cost pressures, and supply chain constraints.