AI Chip Shortage Forces Automakers to Raise Car Prices by Up to 20% - AOL.com

The global AI chip shortage, previously affecting PCs, laptops, and mobile devices, is now spreading into the automotive industry, forcing several automakers to raise vehicle prices. According to Nikk... Read original →

The AI chip shortage, initially impacting consumer electronics, is now permeating the automotive sector, prompting price hikes. As advanced driver-assistance systems and autonomous driving features become standard, demand for DRAM and other memory chips in vehicles is surging, straining supply chains. High-end models may require up to 2TB of memory by 2026, far exceeding previous levels. Car-grade chips, with their stringent reliability requirements, are harder to produce and supply, exacerbating the crisis. Automakers like GM, BYD, and Hyundai are passing increased costs to consumers, revealing vulnerabilities in global semiconductor supply chains. This trend underscores the growing risk of supply disruptions amid geopolitical tensions, pushing automakers toward vertical integration and localized production strategies to mitigate future shocks.