Automakers, retailers warn memory chip shortage impacting prices - ET Auto

Recent warnings from automakers and retailers highlight how the ongoing memory chip shortage is significantly affecting product pricing. This issue underscores the fragility of the semiconductor suppl... Read original →

The current memory chip shortage is cascading from consumer electronics into automotive systems, exposing structural bottlenecks in mature-node (28nm and above) automotive-grade DRAM and NAND. Technically, automakers are delaying domain controller upgrades, slowing the rollout of software-defined vehicle architectures. On compliance, U.S. export controls on semiconductor equipment—combined with concentrated production in Taiwan, China—are forcing Tier 1 suppliers to fast-track Chinese mainland alternatives, raising BOM costs by over 15%. Strategically, Samsung and SK Hynix are prioritizing high-margin clients like NVIDIA and Tesla, tightening allocations to smaller OEMs. Even as new fabs come online, the 18–24 month automotive qualification cycle ensures prolonged shortages over the next 12–24 months, compelling OEMs to form captive chip ventures or equity-tie with foundries—accelerating supply chain regionalization.