DRAM makers prioritize AI data center demand, sparking automotive semiconductor shortage
Release Date: 12/29/2025
DRAM makers prioritize AI data center demand, sparking automotive semiconductor shortage
Fuel For Thought
As we approach 2026, the automotive industry is bracing for yet another potential crisis: a shortage of dynamic random access memory (DRAM) chips. This anticipated shortage will not be quite as dramatic as the 2021 crisis—which prevented more than 10 million cars from being built that year—but could potentially be more disruptive and long-lasting than the 2025 Nexperia incident. DRAM is found in the compute-heavy systems in cars, namely in cockpit and in ADAS/Autonomy systems. However, major DRAM manufacturers are increasingly reallocating their wafer capacity toward high-bandwidth memory...
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Chinese automakers accelerate overseas vehicle manufacturing amid tariff pressures
Fuel For Thought
Chinese automakers are not only reshaping their domestic market but are also becoming formidable players on the international stage. Their aggressive expansion into overseas markets, driven by a combination of competitive pricing, innovative technology, and strategic partnerships, poses both challenges and opportunities for established automakers. Moreover, as trade barriers and regulatory changes emerge in various regions, understanding how Chinese manufacturers adapt can provide valuable insights into the future of global automotive supply chains. In this episode of Fuel for Thought, we...
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Powertrain system trends in flux as electrification goals meet market realities
Fuel For Thought
A decade ago, the path toward full electrification seemed clear. Battery electric vehicles (BEVs) were seen as the inevitable future. But fast forward to today and that once-shared vision has fractured. Different regions are now taking distinctly different routes shaped by policy shifts, consumer sentiment, and economic realities. In this episode of Fuel for Thought, we unpack how these divergent strategies are influencing production planning, why transitional technologies like PHEVs and REEVs are gaining renewed relevance, and how scenario-based forecasting can help automakers stay agile in...
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OEM Pricing Strategy Evolves with Tariff Effects
Fuel For Thought
Since May 3, 2025, automakers have been navigating a complex US trade policy which includes a 25% tariff on imported vehicles and parts from nearly all countries. Although trade negotiations may ultimately reduce this tariff rate, few new deals have been signed so far. Amidst this backdrop, early expectations of an immediate cost pass-through to consumers has not materialized. Instead, automakers have taken a more measured approach to their pricing and production strategies. Moving forward, three of the most important considerations for OEMs will be: Tariff exposure and pass-through...
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Rare earth elements: Auto industry looks beyond China
Fuel For Thought
In this podcast episode, experts from S&P Global Mobility delve into the critical role of rare earth elements (REEs) in the automotive industry—particularly in the production of electric vehicle components like traction motors. China currently dominates both the production and processing of these essential materials. The discussion examines how China’s control over the rare earth supply chain is shaping global industries, the geopolitical implications, and how other nations are responding in an effort to diversify their REE sources. Our experts also explore the rise of emerging...
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A Benchmarking Guide for Software-Defined Vehicles
Fuel For Thought
As the automotive industry shifts toward software-defined vehicles (SDVs), the term has become a buzzword, frequently mentioned at industry events like CES, often with varying interpretations and meanings. Amidst this excitement, many OEMs are making claims about their new SDV launches; They feel the pressure to incorporate SDVs into their product developments to appear competitive in a rapidly evolving landscape. But despite all the talk and promises, there has been no clear industry benchmark to measure vehicles’ readiness for SDV implementation. S&P Global Mobility has developed a...
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Bridging Gaps for Carbon Reporting in the Automotive Industry
Fuel For Thought
Carbon reporting in the automotive industry is becoming increasingly important, as original equipment manufacturers (OEMs) face various regulatory pressures around the world. However, tracking and measuring carbon emissions is not an easy feat. One of the biggest challenges OEMs face lies in the complexity of reporting Scope 3 emissions -- specifically, Scope 3 Category 11, which pertains to the emissions generated during a vehicle's use phase through the end of its life. This category often accounts for 75-80% of an automaker's total carbon footprint, making accurate reporting not just...
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A More Practical Future for Autonomous Vehicles
Fuel For Thought
In this podcast episode, S&P Global Mobility experts discuss the landscape of autonomous vehicles coming out of the 2025 Consumer Electronics Show, or CES, that was held in Las Vegas at the beginning of the year. After years of ambitious announcements and hype around fully self-driving cars, it appears that companies are shifting to a more pragmatic approach. Their conversation explores how tech companies and traditional automakers are now aligning their expectations, focusing on incremental developments and practical applications of autonomous vehicle technology. As the industry moves...
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Tariffs, Taxes, and EVs: The Road Ahead for the Global Auto Industry
Fuel For Thought
In this month's Fuel for Thought, host Guido Vildozo speaks with our experts about how the automotive industry is navigating anticipated shifts under a second Trump administration. Their discussion focuses on the potential global implications of new US tax policies, tariffs, and deregulation. Their conversation also dives into the uncertain future of electric vehicles, with policy changes leading to a potentially significant slowdown in adoption rates. How the auto industry adapts to these changes will be key in determining the pace of EV growth globally. Speakers: Peter Nagle,...
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How EU Tariffs Will Impact the Battery Electric Vehicle Market
Fuel For Thought
In this episode of Fuel for Thought, we explore the European Union's decision to impose tariffs on Chinese battery electric vehicles (BEVs) following concerns about unfair subsidies. The tariffs, ranging from 17% to 35%, affect major manufacturers like BYD, Geely, and SAIC, while Tesla faces a lower rate of 7.8%. This move, aimed at protecting European automakers, may reshape the market but has sparked tensions, with China filing a WTO dispute and considering retaliatory tariffs. The episode features Moderator Guido Vildozo in conversation with Tim Urquhart, Principal Research...
info_outlineAs we approach 2026, the automotive industry is bracing for yet another potential crisis: a shortage of dynamic random access memory (DRAM) chips.
This anticipated shortage will not be quite as dramatic as the 2021 crisis—which prevented more than 10 million cars from being built that year—but could potentially be more disruptive and long-lasting than the 2025 Nexperia incident.
DRAM is found in the compute-heavy systems in cars, namely in cockpit and in ADAS/Autonomy systems. However, major DRAM manufacturers are increasingly reallocating their wafer capacity toward high-bandwidth memory (HBM) for AI data centers.
The profitability and demand for HBM far exceed those of traditional automotive applications, leaving automakers increasingly vulnerable to an automotive supply chain crunch that could rival the previous shortages.
In this episode of Fuel for Thought, we dive deeper into the shortage and explain what automakers need to do in order to adapt.
Speakers:
- Jeremie Bouchaud, Executive Director, Supply Chain and Technology, S&P Global Mobility
- Guido Vildozo, Associate Director, Consulting, S&P Global Mobility (Host)