KATHMANDU: The fast growth of AI data centers is creating a new challenge for car makers. Experts say it could disrupt the global supply of chips used in vehicles.
UBS analysts said the demand from data centers has caused a shortage of memory chips. Some suppliers have already reported price increases of more than 100 percent. The impact could begin from the second quarter.
The issue involves DRAM memory chips. Cars use simpler versions of these chips. AI servers use more advanced ones. Still, both depend on the same limited raw materials.
Major chip makers such as Samsung, SK Hynix, and Micron are focusing more on data centers. These chips bring higher profits than automotive orders.
This shift could reduce chip supply for carmakers. Companies using more electronics and driver-assistance systems face higher risk.
UBS said suppliers like Visteon and Aumovio are more exposed. Among automakers, Tesla and Rivian may be affected more than Ford or General Motors.
The auto industry has faced similar problems before. Chip shortages during Covid reduced vehicle production worldwide. More recently, some factories stopped work due to supply issues.
Analysts say carmakers need to act quickly. Securing chip supply early could help avoid production delays.
