The global memory shortage—intensified by data centers serving artificial intelligence—has begun to push up costs in the automotive sector. According to Nikkei Asia, several major manufacturers are already adjusting prices: General Motors plans to raise typical new-vehicle prices by about 0.3 percent, while China’s BYD intends to increase prices for driver-assistance systems sold separately by 20 percent.
Higher costs on manufacturers' books
Paul Jacobson, Chief Financial Officer of General Motors, expects the company to incur $1.5–2 billion in additional costs due to rising prices for vehicle components, primarily DRAM. Although a 0.3 percent list-price increase may seem small for individual buyers, modern vehicles contain substantially more memory and advanced features than earlier models, so memory-price shifts can meaningfully affect manufacturers’ expenses.
How much memory today, and how much will be needed?
Citing Micron’s 2023 commentary, the report notes an average vehicle at that time contained roughly 90 GB of combined DRAM and NAND flash. That combined requirement is projected to grow to 278 GB by 2026, and flagship models could include up to 2 TB of memory.
A British OEM’s estimates for vehicles launching in 2026 break down memory needs by system:
- Infotainment: 4–16 GB
- ADAS (advanced driver-assistance systems) and other safety systems: 8–32 GB
- Other systems: 16–64+ GB
As artificial intelligence becomes more prevalent in cars, memory requirements could rise further—estimates put AI-enabled needs at around 256 GB, and Micron suggests Level 4 autonomous vehicles (where the car performs all driving tasks) would require at least 300 GB.
Automotive-grade chips and long qualification cycles
Chips used in vehicles differ from consumer electronics: automotive parts must withstand extreme temperatures and continuous vibration, and qualifying components for vehicle use takes years. That slows the industry’s ability to switch suppliers quickly if memory supply tightens.
Industry responses and outlook
Hyundai has asked local chipmakers to reinforce domestic supply chains to increase local availability. With memory demand and prices rising, industry sources including Tom’s Hardware warn that new-vehicle prices are likely to continue increasing in the coming years.
Analysts also note the memory shortage could persist through 2030, implying sustained upward pressure on vehicle costs. For consumers and manufacturers alike, expanding memory capacity and strengthening supplier chains will be key to mitigating long-term price impacts.
