Dram Chips

Dram Chips

• Category: Technology
• Date 22-01-2026

The electric vehicle industry is at risk of a new chip shortage. EV manufacturers including BYD (BYDDF) and Tesla (TSLA) could struggle to get enough DRAM chips, which are heavily used in their cars, because semiconductor companies are prioritizing large data center clients, according to a research note from Wells Fargo published this week.

DRAM chips specialize in temporarily storing data. Cars use DRAM chips for infotainment systems and Level 2 autonomous driving. Most cars currently have about $50 to $110 worth of DRAM chips in them, Wells Fargo says. That number can run as high as $400 in certain models, and up to $2000 per vehicle in future next-gen versions.

The 'Panic Buying' Begins

Boise, Idaho-based Micron Technology (MU) is the largest DRAM supplier to autos, with what Wells Fargo estimates to be a 60% share. Next in line are Samsung and SK Hynix, at 30% each.

Demand for DRAM chips will grow about 26% while supply increases only 21% in 2026, according to Wells Fargo forecasts. That will result in a roughly 14% undersupply this year, forcing semiconductor firms to chose between their data center and auto industry customers.

As a result, EV customers will have to either pony up for more expensive chips or risk not having any at all. The squeeze means they'll face increased costs and possible supply-chain interruptions, the report said.