Automakers could soon face a different kind of semiconductor chip shortage with the explosion of AI data centers.
The details: The growing usage of artificial intelligence is poised to strain the automotive supply chain for dynamic random access memory (DRAM) chips, which are used in vehicles (namely in the cockpit and in Advance Driver Assistance and Autonomy systems, according to an S&P Global report.
DRAM manufacturers are shifting capacity toward high-bandwidth memory (HBM) for AI and cloud data centers to meet the demands of companies like Google, Meta, and Amazon.
Profitability and demand for those AI data centers is far higher than in automotive, leaving automakers more vulnerable to a supply crunch.
The leading DRAM makers, including Samsung Electronics, SK Hynix, and Micron Technology, are phasing out older technologies still used by automakers as they prioritize higher-profit AI data centers.
Why it matters: For dealers, the near-term risk is that high-content vehicles (premium trims, tech packages, ADAS-heavy models) get more expensive to build and harder to source, which can ripple into allocation, option availability, incentives, and delivery timelines.
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Between the lines: The shifting dynamics don’t signal an immediate threat to the auto industry, but they do carry notable short- and long-term implications as automakers ramp up tech offerings.
S&P Global estimates new-contract DRAM prices could rise 70% to 100% in 2026 vs. 2025, with premium vehicles feeling the pain first.
Long term, older-generation DRAM supply may dry up rapidly starting around 2028 (regardless of price), forcing automakers, OEMs, and suppliers to redesign cockpit and ADAS systems.
What they’re saying: “For the automotive sector, this does not translate into an immediate chip shortage but rather into tighter allocation, longer lead times, and higher pricing pressure—particularly in memory and power components,” noted S&P Global Mobility. “Automakers now face the challenge of managing supply in a market where total capacity may be growing, yet their share is shrinking.”
Bottom line: The best hedge for dealers is likely tighter coordination with OEM reps on buildable configurations, a strong pre-sold pipeline with realistic ETAs, and a merchandising strategy that clearly explains why certain features, trims, or timelines may change.
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