The global shortage of memory chips, fueled by the expansion of artificial intelligence infrastructure, is beginning to spill over from the PC market to the automotive industry. The rising cost of DRAM and NAND memory is already increasing vehicle production costs, and analysts warn that the average price of a new car in the US could head toward $60,000.
The crisis, referred to in the tech industry as "RAMageddon," affects more than just laptops, game consoles, and televisions. Increasingly digitized cars use significantly more memory for infotainment systems, driver-assistance systems, cameras, sensors, and centralized computing platforms.
DDR5 memory prices soar
Prices for DDR5 modules have risen sharply over the last 12 months. For some kits, the increase is nearly fivefold year-over-year. For example, a 64GB DDR5-5600 kit, consisting of two 32GB modules, has increased from an average of $191 in August 2025 to about $1,118 in August 2026. This is a 485% increase.
Other configurations have also seen significant price hikes. The price of a 32GB DDR5-4800 kit has risen from about $90 to $425, and a 128GB DDR5-6400 kit has gone from $329 to nearly $3,400.
The primary reason is not a new breakdown in supply chains, but the reallocation of production capacity toward high-bandwidth memory used in AI servers. These products yield higher profits for manufacturers than standard memory for personal devices and automobiles.
Samsung, SK hynix, and Micron produce the vast majority of the world's DRAM memory. According to market data, a large portion of their 2027 capacity is already reserved, which limits the ability of supply to react quickly to any new rise in demand.
Cars are becoming increasingly dependent on memory
In a modern car, memory is no longer just for the multimedia screen. It is needed for processing data from cameras and radars, for driver-assistance systems, navigation, digital dashboards, connected services, and software updates.
According to Micron data, the average car uses about 90GB of combined DRAM and NAND memory. For 2026, this volume is projected to grow to approximately 278GB, and for premium and high-tech models, it could reach nearly 2TB.
Ford CFO John Lawler stated to investors that the rise in DRAM prices and inflationary pressures would add approximately $1 billion to the company's costs in 2026. General Motors and Volkswagen have also warned of pressure on chip costs.
According to automotive analyst Sam Abuelsamid, the memory shortage could increase vehicle prices by an average of a few percentage points over the next year. At a 4% price increase, that means approximately $2,000 more per vehicle.
"It is one thing for the AI industry's appetite for memory chips to raise the price of an Xbox or even a new laptop. The stakes become much higher when, because of this price increase, the goods in the store become more expensive, and it becomes harder to pick the kids up from school and get to work," says Abuelsamid.
Risk of over-ordering
Some investors warn that the visible shortage may be amplified by the so-called "bullwhip effect." When companies fear a future lack of components, they place larger orders than are actually necessary. Thus, the stated demand appears higher than actual consumption.
A similar cycle was already observed after the previous major chip shortage. After a period of constrained supply and panic buying, the market moved toward inventory buildup, which pressured the sales and valuations of semiconductor manufacturers.
The risk does not negate the real growth in memory consumption by AI data centers, but it shows that prices can also be influenced by buyer expectations, not just actual demand.
The effect is already visible in electronics
The price increase is spreading to other consumer products. Television manufacturers began more actively purchasing components as early as January 2026, trying to limit the impact of future memory price increases.
The duration of the shortage will depend on the speed at which manufacturers expand their capacity, the demand for AI hardware, and whether companies reduce precautionary stockpiling. For now, market signals suggest that supply pressures could continue throughout 2027.