UBS Warns Auto Sector Faces DRAM Supply Crisis from 2026 Q2

Global automakers face a supply crunch as DRAM shortages threaten automotive electronics, according to UBS. The chip shortage stems from semiconductor suppliers shifting production toward AI servers, leaving automotive-grade memory in short supply and driving prices up sharply. The report forecasts that DRAM price increases of up to 200% could reduce auto parts suppliers’ EBIT by 24%, or 480 million euros, under worst-case scenarios. This impact is expected to intensify from the second quarter of 2026 as older memory technologies phase out and new ones fail to meet demand. UBS warns that companies like Visteon and Aumovio, which rely heavily on electronic and ADAS components, are especially vulnerable. Meanwhile, EV makers such as Tesla and Rivian face higher costs due to increased DRAM usage in centralized computing systems.