The global shortage of computer memory is no longer affecting only laptops, gaming consoles and consumer electronics. Automakers are now warning that tighter supplies of DRAM and storage chips could push vehicle prices higher as the automotive sector competes with the rapidly expanding artificial intelligence industry for critical components.
As Canada’s automotive industry remains closely connected to North American manufacturing, sustained increases in semiconductor and memory costs could eventually influence vehicle production expenses and pricing across the region.
GM Warns of Rising Costs Linked to Memory Supply
General Motors says the ongoing memory shortage is expected to contribute to higher costs this year, adding to broader inflationary pressures affecting vehicle production.
In its second-quarter earnings report, the automaker said it expects vehicle pricing in North America to increase by approximately 0.5%. Chief Financial Officer Paul Jacobson also told investors that the company anticipates between $1.5 billion and $2 billion in commodity inflation headwinds during the year, including significantly higher DRAM memory costs.
The warning highlights how growing demand for advanced memory chips is becoming a financial challenge for manufacturers that increasingly rely on sophisticated electronic systems in modern vehicles.
AI Data Centres Are Reshaping the Memory Market
The surge in artificial intelligence infrastructure has dramatically changed the global memory market.
General Motors and Ford recently signed long-term supply agreements with Micron to secure memory and storage components for future vehicle production. The agreements are intended to strengthen supply chains as AI data centres consume an ever-larger share of global memory manufacturing capacity.
Industry reports indicate that major AI infrastructure projects require hundreds of thousands of additional DRAM wafers each month, representing roughly 40% of worldwide DRAM production. That growing demand has intensified competition for memory supplies across multiple industries.
Memory Manufacturers Shift Priorities
To meet demand from AI customers, leading memory manufacturers including SK Hynix, Samsung and Micron have increasingly prioritized supplying large-scale data centres over consumer electronics producers.
Micron has also reduced its focus on its consumer memory business under the Crucial brand, choosing instead to dedicate more resources to the expanding data centre market.
The resulting supply imbalance has contributed to what many technology observers have dubbed the “RAMpocalypse”—a period marked by limited memory availability and sharply rising prices.
Consumer Electronics and Automakers Feel the Impact
The effects of the shortage have already become visible in the consumer technology sector.
Apple recently increased prices on several products, while Microsoft also announced higher prices for Xbox consoles.
The automotive industry is now facing similar challenges, with manufacturers warning that rising memory costs are becoming an increasingly significant factor in vehicle development and production.
Global Auto Industry Responds
General Motors is not alone in addressing the issue.
According to reports from Asia, Chinese electric vehicle manufacturer BYD increased the price of its optional driver-assistance features by 20%, citing the substantial increase in global memory prices as necessary to maintain product quality.
In South Korea, Hyundai Mobis—the automotive parts division of Hyundai Motor Group—previously called on 23 domestic companies and institutions, including Samsung, to collaborate on strengthening the country’s automotive semiconductor supply chain.
These developments reflect growing concern throughout the global automotive sector about ensuring reliable access to essential electronic components.
Modern Vehicles Require Far More Memory
The pressure on memory supplies comes as today’s vehicles rely on increasingly sophisticated digital technologies.
Advanced driver-assistance systems, connected vehicle services, high-resolution infotainment platforms and future autonomous driving capabilities all require substantially more memory than previous generations of automobiles.
Micron estimated in 2023 that the average vehicle contained approximately 90GB of combined RAM and NAND storage. The company projected that figure would rise to roughly 278GB by 2026, while some premium vehicles could approach 2TB of total memory capacity.
More recent estimates from the company suggest that the average vehicle now contains around 16GB of DRAM alone. Vehicles capable of Level 4 autonomous driving could require more than 300GB of DRAM, underscoring how rapidly memory requirements are increasing.
Outlook
As artificial intelligence infrastructure continues expanding worldwide, competition for advanced memory chips is expected to remain intense. For automakers across North America, including those with operations tied to Canada’s manufacturing sector, securing reliable semiconductor supplies is becoming an increasingly important part of long-term production planning. With vehicles becoming more software-driven and technologically advanced, memory availability is emerging as a critical factor shaping future automotive costs and innovation.
Nolan Fraser is a contributor at Angperyodiko.ca, covering a wide range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. He focuses on delivering clear, accurate, and accessible reporting that helps readers stay informed about current events and developments that matter. With an emphasis on useful information and balanced storytelling, Nolan aims to provide timely coverage and relevant insights for audiences across Canada and beyond.