AI data centers are outbidding carmakers for memory chips. Spot prices for DRAM climbed sharply over just four months. Just three suppliers handle nearly all of the world’s DRAM. Months into the COVID-19 pandemic, the auto industry ran headlong into a worldwide semiconductor shortage worse than anything the sector had faced in years. Now a second global chip crunch has arrived, and this one traces back to the artificial intelligence boom rather than a virus. The culprit is AI companies racing to build data centers, swallowing vast quantities of DRAM memory chips and driving prices sharply higher. Carmakers are already scrambling to respond. A new report from consulting firm Kearney claims that spot prices for DRAM chips have jumped roughly 450 percent between September 2025 and January 2026. Car manufacturers are feeling the pinch, and say the situation has deteriorated quickly over recent months. However, many insist that supply chains remain intact and that automakers are still benefiting from the risk management systems they employed during the COVID-19 semiconductor shortage. Ford and General Motors have already increased their 2026 raw material procurement forecasts by several hundred million dollars as memory chip costs continue climbing. Read: The GoPro Behind Your Track Footage Is Getting Killed By AI Chip Prices Speaking with Automobilewoche, a VW spokesperson said, “In recent years, we have implemented measures to assess such market developments at an early stage and to minimize supply risks. Currently, the supply chains for memory chips are intact. Should potential challenges arise in individual semiconductor categories, we are prepared to react flexibly with targeted countermeasures and expect to be able to maintain a stable supply.” No Production Changes, Yet VW Group Joachim Kahmann from Stellantis, who serves as the Senior Vice President for Global Purchasing for Electronics at the automaker, notes that the company is planning higher procurement for 2026 and 2027 but says it has not yet had to adjust production due to shortages. He also expects the disruption to be temporary, predicting that market conditions could improve by 2028. Similarly, Renault said that it expects “the industry to adapt through continuous investment and capacity expansion.” BMW lands in the same place. The automaker notes that it does not purchase memory chips directly, relying instead on long-term agreements with suppliers that source those components. The company sees no signs of looming supply shortfalls and has left output untouched. Why The Risk Hasn’t Passed However, while car manufacturers are putting on a brave public face, the threat of significant disruptions remains. According to the ZVEI, demand from AI data centers and the years required to expand semiconductor manufacturing capacity mean 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. For now, they can sell chips to the highest bidder, and that’s often AI companies. Ford
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