How AI is pushing up semiconductor prices for the car industry

In less than a decade, the car industry has already been hit by a semiconductor market crisis and is now starting to face a fresh squeeze. However, while the earlier disruption was tied to the Covid-19 pandemic, the latest pressure stems from the rapid rise of Artificial Intelligence (AI) in recent years.

Alongside smartphone and computer makers, car manufacturers are now competing for semiconductors with the technology giants spending billions of euros on AI data centres. As demand accelerates, the cost of these components is being pushed upwards.

Because semiconductors are vital to modern vehicles, any price rise feeds straight into higher manufacturing costs. Over time, if this pressure persists, part of the increase may ultimately show up in the price consumers pay when replacing their car.

Which semiconductors are getting more expensive

A clear example is DRAM memory. This type of memory is widely used in servers and computers, and it is also found in multiple electronic systems within cars.

According to a report by consultancy Kearney, cited by Carscoops, prices for these memory products-particularly HBM (High Bandwidth Memory)-rose by around 450% between September 2025 and January 2026. This surge is tightening production costs across several industries, including automotive.

Even though vehicles use different variants of these memories, the price spike still creates knock-on pressure throughout the entire semiconductor supply chain.

Is it a concern?

Unlike the pandemic-driven crisis, this time the issue is not the result of shuttered plants or broken logistics networks. Instead, it comes down to an imbalance between supply and demand.

AI’s fast expansion has lifted demand for certain types of semiconductors that are also important for building cars. With global manufacturing capacity for these parts constrained, chipmakers naturally prioritise the customers willing to pay the most-and increasingly, those customers are technology firms.

The problem is compounded by how concentrated the market is. In the case of DRAM memory, for instance, about 90% of worldwide output is currently controlled by just three companies: Samsung, SK Hynix and Micron.

What the carmakers are saying

For now, carmakers insist the situation is a long way from the pandemic-era crunch. While they acknowledge costs are rising, they say supply chains remain stable at present and that production has not been affected.

Ford and General Motors have already increased this year’s budgets for buying raw materials by several hundred million euros. Volkswagen says it strengthened supply-chain monitoring after the 2020 semiconductor crisis and claims it is ready to respond if difficulties emerge.

Stellantis says it is anticipating market pressure by planning larger purchases for 2026 and 2027, although it believes conditions could stabilise from 2028 onwards. Renault likewise expects the sector to adjust as semiconductor production capacity expands, while BMW says that, thanks to long-term contracts with its suppliers, it does not see risks to production.