Article Summary

The 2025–2026 DRAM shortage isn’t 2021 all over again—but it will impact pricing, trims and features. What dealers and marketers must know now.

If the term “chip shortage” brings back memories of empty lots, you’re not alone.  However, today’s DRAM chip shortage is driven by different factors, with impacts distinct from those of the analog chip crisis of 2021. Understanding the difference helps dealerships set expectations, accurately message inventory 
and feature availability, and protect margins.

What’s causing today’s DRAM shortage?

Dynamic random access memory (DRAM) is a semiconductor workhorse essential for powering infotainment, digital clusters, advanced driver assistance systems (ADAS), and EV systems in vehicles.  As the industry shifts more towards software-defined architectures and centralized computing, DRAM requirements and use will rise. 

Yet automotive is not the only industry vying for DRAM.  The current supply crunch is driven by the AI explosion, especially in data centers, where high-bandwidth memory (HBM) DRAM is in high demand.  As a result, major DRAM manufacturers are reallocating wafer capacity to serve this more lucrative market.

  • Automotive versus data center prioritization: Margins for DRAM used in data centers are much higher than in automotive. This has the leading suppliers like Samsung, SK Hynix, and Micron — which provide 88% of automotive DRAM — prioritizing data center clients.

  • Price increases: DRAM old generation prices are expected to rise 70–100% in 2026 compared to 2025.  If OEMs can pay the premiums, the product will be available.

How is this different from the 2021 analog chip shortage?

The 2021 analog chip shortage was a broad supply-chain shock affecting mature-node chips — used in everything from sensors to power management to body electronics, infotainment and more. The crisis was worsened by pandemic disruptions, auto industry order whiplash, hoarding, and slow capacity expansion. Automakers competed with consumer electronics for supply, and the inability to quickly add mature-node fab capacity meant supply couldn’t keep up. 

Key differences:

  • Breadth: The 2021 crisis hit nearly every vehicle, as analog chips are ubiquitous. The DRAM shortage is more selective, mainly impacting vehicles with advanced digital features.

  • Severity: The analog chip shortage stopped production lines. The DRAM shortage is more about cost, allocation, and feature mix — at least initially.

  • Response time: Mature-node analog chips have long qualification cycles and slow capacity ramp-up. DRAM supply is more elastic if automakers are willing to pay, but prices are volatile.

How the DRAM shortage impacts automotive marketers and dealerships

Near-term (2026–2027): Allocation and affordability challenges

DRAM capacity will be tight but still attainable. If automotive clients are willing to pay more to match the wafer value DRAM makers would get from other industries, they can secure the volume they need. 

Luxury and high-tech vehicles are most exposed — premium models with advanced cockpits, rich displays, and autonomy features require more DRAM. OEMs must decide if they will absorb the cost or pass along the increase to the customer.

For dealerships, the implications are:

  • Mid-year packaging changes: Features bundled or unbundled differently.

  • Available trim levels: OEMs prioritize builds where they can allocate supply. 

  • Subtle feature constraints: Limited availability of certain displays, infotainment, or ADAS packages.

Sales teams should be prepared to explain that this is not a repeat of 2021. The issue is more about cost and feature variability, not widespread vehicle shortages.

Longer-term (2028-2031): Redesign pressure

A bigger challenge looms after 2027. As DRAM makers focus on newer generations of chips, the supply of older DRAM used in current cockpit and ADAS designs will dry up, regardless of price. For OEMS and tier 1 suppliers, most cars planned for production in 2028 have cockpit and ADAS designs that use current or older-generation DRAM.  These will all need to be redesigned to be compatible with the next generation of DRAM chips.  This affects feature roadmaps and option strategies as well.  

Mobility-2.26-automotive-dram-consumption-by-generation-polk-newsletter

What can marketers and dealers do?

  1. Communicate clearly: Explain that this is a semiconductor allocation and cost issue, not a production stoppage.
  2. Prepare for feature variability: Expect changes in packaging and feature availability by trim or build week.
  3. Protect margins: Focus on selling the value of available features, not discounting due to confusion.
  4. Monitor redesign timelines: Stay in touch with OEMs about platform updates to plan product and marketing strategies that best align with incoming inventory.

ShapeBottom line: The DRAM shortage is a different kind of supply challenge — one that will mainly affect premium vehicles, raise costs, and prompt quick redesigns.

Dealers and marketers who set expectations early and communicate clearly will be best equipped to handle the disruption.

Want to see the new vehicle launches for 2026 and 2027? Download our latest US Vehicle Launch and Activity Guide here

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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.