Mainland China’s DRAM push – a solution to the global supply crisis?

Mainland China cannot immediately replace established automotive dynamic random-access memory (DRAM) suppliers. However, it can expand production in the consumer, AI and industrial markets, and thereby contribute to a reduced risk of shortages in the automotive segment.

The first quarter of 2026 opened with renewed concerns about a shortage of DRAM for automotive applications. Memory manufacturers have been reallocating wafer capacity toward high-bandwidth memory (HBM) and other premium products for AI data centers, where demand and margins are rising fastest. This reallocation tightened supply for traditional automotive DRAM, leaving vehicle makers exposed to constrained inventories and rising competition for limited fab capacity.