Ford warns that car prices will rise when the AI memory cyber-crisis reaches the automotive industry

Short summary

The memory shortage caused by shifting capacity to AI chip production is already starting to be felt in the automotive industry. Ford CFO Sherri House warned of a possible rise in car prices. The reason – decisions by major memory makers (Samsung, SK Hynix, Micron) to redirect production in favor of AI data centers.

1. What the head of finance at Ford says
- Event: Sherri House’s speech at the Wolfe Research summit in New York.
- Statement: Ford controls supplies and has sufficient stock, but pressure on procurement prices is already being felt.
- Source: *Ford Authority*.

2. Why the memory shortage arose
Supplier Action Consequences Samsung Redirecting capacity to AI chip production Reducing NAND/DRAM stocks for other sectors SK Hynix Similarly Samsung – Micron Same, plus closure of Crucial’s division –
- Main reason: large AI data centers (Amazon, Google, Meta, Microsoft, OpenAI, etc.) require more and more memory.
- Impact on automotive: NAND/DRAM stocks for cars are shrinking.

3. Example of price changes
- 16 GB RAM module:
- 2017: $110
- 2024: $240
This is only outdated technology; new chips are rising in price faster.

4. Micron’s solutions and their consequences
1. Closure of Crucial – retail RAM production stopped to free capacity for cloud customers.
2. Memory forecast for cars:
- 2023: an average car used ~90 GB of memory across all modules.
- 2026 (Micron forecast): volume should triple.

*Conclusion*: Micron noticed the growing dependence of automotive on memory, then shifted resources to another segment.

5. Industry status
- Experts have been warning for months about an impending “memory crisis.”
- Public statements from major automakers are still few.
- Counterpoint Research: signs of panic and “panic buying” of memory chips are observed in the automotive sector.

Conclusion
The memory shortage caused by strategic decisions of AI chip makers is already putting pressure on the automotive industry. It leads to higher car prices and increased anxiety among automakers. Market indicators point to an urgent need for solutions to ensure stable memory supply.