On January 26, reports surfaced indicating that a looming shortage of memory chips could deal a heavy blow to the automotive sector. As software-defined vehicles gain widespread acceptance, the automotive industry's appetite for memory chips has surged. Yet, the supply is anticipated to skew heavily towards the burgeoning AI market, exacerbating the scarcity. Some industry analysts posit that certain automotive chip manufacturers might be compelled to rethink their product designs in the face of dwindling memory supplies.

An insider from the semiconductor industry revealed that vulnerabilities within the automotive semiconductor supply chain could surface in the first half of this year, with memory chip prices projected to soar by over 200%. UBS Securities also chimed in, cautioning that the memory chip deficit could pose a substantial threat to the global automotive landscape, imposing financial strain on both suppliers and automakers alike.