Chip scarcity assaults auto industry amid the worsening Nexperia and DRAM crisis — fragile sector rocked by undersupply, which may end worse than the 2021 shortage

The auto industry is facing a severe chip shortage, impacting production at companies like Honda due to supply chain disruptions from Nexperia and the DRAM crisis. The memory shortage, driven by AI data center demand, is particularly affecting automotive-grade components that require high reliability. Automakers are expected to face price hikes of 30-100% for chips in the next year, with DRAM costs potentially doubling for some vehicles. Manufacturers may need to scale back on high-tech features to mitigate rising costs, and the industry may need to redesign systems to adapt to changing chip technologies post-2027.