A new tug of war for semiconductors: data centers vs. automakers
The practical impact on automotive DRAM and NAND manifests as constrained allocations, stretched lead times and pronounced price volatility.
The automotive semiconductor market has been navigating a period of unusual volatility. On one side, near-term demand pressures are easing. The slowdown in electric vehicle adoption is reducing average chip content per vehicle, since EVs typically contain significantly more semiconductors than internal combustion models. Tariffs are further dampening global vehicle demand. S&P Global Mobility estimates suggest up to 0.6 million fewer vehicles will be produced in 2026 because of trade barriers. Combined, these forces have prompted some original equipment manufacturers, particularly in North America, to postpone ambitious software-defined vehicle and advanced zonal electronic/electrical (E/E) architecture plans, which would otherwise have sharply increased semiconductor content per vehicle.
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