Carmakers Feel the Squeeze as AI Giants Gobble Up Memory Chips

Just as the auto industry thought it had put the semiconductor crisis of 2020 in the rearview mirror, a new chip crunch is hitting, and this time, the culprit is artificial intelligence, not a pandemic. AI companies racing to build massive data centers are buying up vast quantities of DRAM memory chips, driving spot prices up by roughly 450 percent between September 2025 and January 2026, according to a new report from consulting firm Kearney.

Car manufacturers are feeling the heat, with Ford and General Motors already boosting their 2026 raw material procurement forecasts by hundreds of millions of dollars.

Despite the sticker shock, most automakers say their supply chains are holding up so far. A Volkswagen spokesperson told Automobilewoche that the company has early-warning systems in place and can react flexibly to potential shortages. Stellantis’s senior vice president for global electronics purchasing, Joachim Kahmann, said the company is planning higher procurement for 2026 and 2027 but has not yet had to adjust production.

Renault and BMW echo that sentiment, with BMW noting it relies on long-term supplier agreements and sees no immediate threat to output.

The real risk, however, hasn’t passed. Nearly 90 percent of the world’s DRAM supply comes from just three companies, Samsung, Micron, and SK Hynix, and they’re showing little urgency to ramp up production. With AI data centers willing to pay top dollar, those suppliers can sell to the highest bidder.

The ZVEI, a German electronics industry association, warns that pricing pressure is unlikely to ease until at least 2028, given the years needed to expand semiconductor manufacturing capacity. For now, carmakers are bracing for a long, expensive ride.