The pandemic chip shortage has left the automotive industry on high alert, but a new threat has emerged: AI data centers. The growing demand for memory chips is putting pressure on the global supply, with major players like Western Digital and Seagate already selling out most of their 2026 inventory. This shortage has significant implications for the industry, with computer prices expected to rise by 15 to 20 percent. The cost of memory chips has skyrocketed 90 percent between the fourth quarter of 2025 and the first quarter of 2026, according to Counterpoint Research. This surge in prices is forcing companies like Dell to increase their computer prices, and Lenovo is expected to follow suit. The situation is further complicated by the decision of Micron to shut down its consumer business at the end of February, citing the need to improve supply and support for its larger, strategic customers. The ...
The pandemic chip shortage has left the automotive industry on high alert, but a new threat has emerged: AI data centers. The growing demand for memory chips is putting pressure on the global supply, with major players like Western Digital and Seagate already selling out most of their 2026 inventory. This shortage has significant implications for the industry, with computer prices expected to rise by 15 to 20 percent.
The cost of memory chips has skyrocketed 90 percent between the fourth quarter of 2025 and the first quarter of 2026, according to Counterpoint Research. This surge in prices is forcing companies like Dell to increase their computer prices, and Lenovo is expected to follow suit. The situation is further complicated by the decision of Micron to shut down its consumer business at the end of February, citing the need to improve supply and support for its larger, strategic customers.
The reliance on memory chips in modern cars is well-documented, with many manufacturers relying on these components to power advanced safety features, infotainment systems, and other critical systems. The impact of this shortage will be felt across the industry, with potential delays and increased costs for car manufacturers.
As the demand for memory chips continues to grow, it’s clear that the automotive industry must take steps to mitigate the risks associated with this shortage. By diversifying its supply chain and investing in alternative technologies, manufacturers can reduce their reliance on a single supplier and minimize the impact of any future disruptions.
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