Memory semiconductor price inflation is impacting the automotive supply chain as Samsung Electronics, SK Hynix, and Micron shift production capacity toward High Bandwidth Memory (HBM) and AI server chips. This pivot is causing a shortage of automotive-grade DDR4 DRAM, with costs for high-end electric vehicles potentially rising from $200 to $1,200 per unit. NIO CEO William Li and analysts from Barclays and UBS indicate that supply constraints will intensify starting in the second quarter, disproportionately affecting EV makers like Tesla and Rivian that require significantly higher chip counts per vehicle.