DRAM shortage hits the auto industry: why car prices are rising following components

The global semiconductor crisis and shortage of memory components (DRAM and NAND) have gone far beyond the PC and gaming market. As cars become “supercomputers on wheels,” their dependence on specialized memory increases critically, which inevitably affects the final price tag for the consumer.

How the memory crisis affects automakers

According to Nikkei Asia, the world’s leading companies have begun to review their pricing policies. General Motors Corporation announced an expected increase in prices for new cars by 0.3% this year. Previously, GM planned to keep prices at the same level or even reduce them, but rising costs adjusted these forecasts.

Chinese market leader BYD has already taken more drastic measures, increasing the cost of driver assistance systems by 20% for those customers who buy these systems separately. In turn, Hyundai called on local manufacturers to strengthen supply chains to minimize the risk of further shortages.

Why cars require more and more DRAM

GM CFO Paul Jacobson said the company’s component costs, particularly DRAM, will increase by $1.5 billion to $2 billion. The reason is simple: modern models require many times more memory due to the introduction of new functions, multimedia and advanced security systems.

DRAM capacity in modern cars

According to Micron data for 2023, the average memory consumption per car is about 90 GB. It is expected that by 2026 this figure will increase to 278 GB, and in top versions – up to 2 TB. The memory distribution in automotive systems is as follows:

The emergence of AI assistants will require even more resources – at least 256 GB. Cars with level 4 autonomy will need at least 300 GB of RAM.

Features of car memory

It is worth considering that the memory used in cars is a specialized component. It must be extremely resistant to external influences: from extreme temperature changes to constant vibrations while driving. Testing such chips to meet stringent quality standards takes months or years, further complicating the supply situation and making it difficult to respond quickly to surges in demand.

Should we expect stabilization

Experts point to a disappointing forecast: in addition to a direct increase in the price of equipment, buyers may face delivery delays and a real shortage of cars at dealerships. As the amount of memory required for transportation will grow in parallel with the integration of AI, the automotive sector will become a full-fledged competitor to the IT industry for available DRAM and NAND supplies, making price increases a long-term trend rather than a temporary phenomenon.