"The global pandemic snarled supply chains, hitting the supply of semiconductors particularly hard. This was bad because these chips go into just about all consumer electronics, and you need hundreds of them to make a modern car. Auto production slowed to a crawl. The aftershocks of the extremely limited supply of cars are still being felt, especially if you look at how expensive new cars still are to this day."
"The bad news: A new chip crisis is brewing. This time around it's AI's fault. The tech industry's unstoppable appetite for chips to put in their data centers is expected to crimp supply for the car business, Bloomberg reported on Tuesday, citing some analyst reports. Here's the outlet with the details: The specific type of semiconductors at issue are dynamic random-access memory chips, known as DRAM."
Global semiconductor supply chains were severely disrupted during the COVID-era, causing long-lasting higher new-car prices and reduced auto production. A fresh chip shortage is emerging driven by surging AI and data-center demand for higher-end memory, specifically DRAM. Automakers and parts suppliers rely on older memory chips but share constrained silicon wafer capacity with AI customers, risking deprioritization. Chipmakers are expected to favor higher-margin buyers, which could force car companies to scramble for sourcing and face rising component prices. Concurrently, the market also notes milestones and regulatory moves affecting electrified transportation and micromobility adoption.
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