- The automotive industry is managing the tight market for DRAM through a mix of long-term supply agreements and a shift to next-generation memory types, such as DDR5.
- DDR4/LPDDR4 tightness for automotive customers will extend beyond 2027. In June 2026, Micron stated that supply would remain constrained “beyond 2027”, and no supplier has given a firm end date.
- Chinese domestic substitution, led by CXMT, could ease pressure for the country’s market over the long run.
The global automotive market is contending with several major trends – the shift to electric drivetrains, new E/E architectures, and greater levels of driver assistance and, ultimately, autonomy. On top of these are new trade barriers, stressed consumer finances and military conflicts affecting fuel prices, which impact consumer purchase decisions and, ultimately, automaker production roadmaps. Compounding these challenges is the soaring memory demand, caused by the buildout of new data centers around the world. This has caused dramatic price increases over the last year, putting additional strain on an already stressed industry.
