AI Chip Battle Hits Auto Industry as Li Bin and Lei Jun Warn of 2026 DRAM Supply Crisis

Fueled by the AI boom, global DRAM chip production capacity is rapidly shifting toward data centers, triggering severe supply shortages and soaring costs for the automotive industry. Financial institutions including Wells Fargo and UBS have warned that automakers could face production disruptions in 2026 due to a DRAM shortfall, with current DDR4/DDR5 prices already several times higher than in 2024. NIO’s Li Bin and Xiaomi’s Lei Jun have both publicly highlighted the immense pressure from rising memory prices, noting that DRAM cost increases alone could add thousands of yuan per vehicle. With less than 10% of the DRAM market share and reliance on older-generation chips, automakers are at a disadvantage in capacity allocation. Analysts project a 14% DRAM supply-demand gap by 2026, with new capacity not expected to come online until 2028 at the earliest. Automakers urgently need to address this structural crisis through technological upgrades, long-term supply agreements, and supply chain restructuring.