Auto sector at risk from as chip suppliers favour AI data centres, says S&P
📊Executive Summary
The automotive sector is facing significant risks due to semiconductor supply chain disruptions, as highlighted by S&P Global Mobility. Chip manufacturers, including Samsung Electronics, SK Hynix, and Micron Technology, are reallocating their resources towards high-bandwidth memory (HBM) for AI data centers, which offer higher profit margins compared to traditional automotive applications. This shift is leading to a potential chip shortage for premium carmakers, who rely heavily on DRAM for advanced features in vehicles. The phase-out of older semiconductor technologies, such as DDR4 and LPDDR4, further exacerbates the situation, prompting automotive manufacturers to scramble for components. S&P predicts that DRAM prices could rise by 70-100% in 2026, impacting procurement strategies for automotive OEMs....
More Insights Available
Unlock Full Analysis
Sign in to access the complete executive brief, risk analysis, and full article content.