AI Is Eating All The Chips Your Next Car Needs

Key Takeaways

• AI companies are outbidding carmakers for memory chips, causing prices to surge.
• Spot prices for DRAM chips have jumped roughly 450 percent between September 2025 and January 2026.
• Carmakers are feeling the pinch, but many insist that supply chains remain intact.
• Ford and General Motors have increased their 2026 raw material procurement forecasts by several hundred million dollars.
• BMW, Stellantis, and Renault expect the disruption to be temporary and have not yet had to adjust production due to shortages.

What’s Causing the Chip Shortage?

The culprit behind the second global chip crunch is the artificial intelligence boom, with AI companies racing to build data centers and swallowing vast quantities of DRAM memory chips.

This has driven prices sharply higher, with spot prices for DRAM chips jumping roughly 450 percent between September 2025 and January 2026.

Carmakers are already scrambling to respond, with Ford and General Motors increasing their 2026 raw material procurement forecasts by several hundred million dollars.

How Are Carmakers Responding?

Despite the challenges, many carmakers insist that supply chains remain intact and that they are prepared to react flexibly with targeted countermeasures.

Volkswagen, for example, has implemented measures to assess market developments at an early stage and minimize supply risks.

BMW notes that it does not purchase memory chips directly, relying instead on long-term agreements with suppliers that source those components.

Why The Risk Hasn’t Passed

However, the threat of significant disruptions remains, with demand from AI data centers and the years required to expand semiconductor manufacturing capacity meaning pricing pressure is unlikely to ease anytime soon.

Almost 90 percent of global DRAM demand is met by Samsung, Micron, and SK Hynix, and they are far from significantly ramping up production.

What’s Next for the Industry?

Carmakers are putting on a brave public face, but the situation remains uncertain.

Renault expects the industry to adapt through continuous investment and capacity expansion, while Stellantis predicts that market conditions could improve by 2028.

Frequently Asked Questions

Q: What’s causing the chip shortage?

The artificial intelligence boom is driving the demand for memory chips, causing prices to surge.

Q: How are carmakers responding?

Carmakers are implementing measures to assess market developments at an early stage and minimize supply risks, and some are increasing their raw material procurement forecasts.

Q: Will the shortage affect car production?

While carmakers are prepared to react flexibly with targeted countermeasures, the threat of significant disruptions remains, and the situation is uncertain.