AI Will Consume Every Chip Your Next Vehicle Requires

The auto industry encountered a global shortage of semiconductors months into the COVID-19 pandemic, which was the worst the industry had experienced in years. There is currently a second worldwide chip shortage, and this one is caused more by the growth of artificial intelligence than by a virus. The reason is that AI firms are racing to construct data centers, consuming enormous amounts of DRAM memory chips and driving up prices dramatically. Automakers are already rushing to react.

A VW spokesperson told Automobilewoche that proactive risk management has kept their memory chip supply chains secure, with targeted countermeasures ready to ensure stability should any specific shortages arise.

Stellantis and BMW report no production impacts from the chip shortage despite rising costs. Stellantis expects stabilization by 2028, while BMW relies on long-term supplier agreements to maintain output. Renault similarly anticipates the industry will adapt through ongoing investment. Why The Risk Hasn’t Passed

Despite the optimistic public stance adopted by automotive manufacturers, the risk of substantial supply chain disruption persists. According to the ZVEI, the surging demand from artificial intelligence data centers, coupled with the extended timelines required to scale semiconductor manufacturing capacity, suggests that pricing volatility is unlikely to subside in the near term. As approximately 90 percent of global DRAM demand is currently concentrated among three suppliers—Samsung, Micron, and SK Hynix—production output remains limited. Consequently, these manufacturers continue to prioritize high-bidding AI firms, leaving the automotive sector in a precarious position.

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