Automotive Memory Demand to Surge by 2026, Micron Forecasts

Micron Technology, a leading semiconductor manufacturer, projects a substantial increase in memory chip requirements for the automotive sector by 2026. The company estimates that the average vehicle will utilize approximately 278 gigabytes (GB) of DRAM and NAND storage, a significant jump from the roughly 90 GB used in 2023. This represents a projected growth of over 208%.

This surge in demand is attributed to the increasing complexity of in-car technology, including advanced infotainment systems, driver-assistance features (ADAS), enhanced safety systems, and the integration of artificial intelligence (AI) functionalities. For advanced autonomous driving capabilities, such as L4 levels, the memory requirement could reach as high as 300 GB per vehicle.

The escalating demand for memory chips in vehicles comes amidst a broader global shortage impacting various industries. The automotive sector's need for these components is intensifying as AI applications and data centers also increase their consumption of memory resources. This dual demand may lead to tighter supply chains and upward price pressure for automotive-grade memory.

Industry analysts note that AI's share of DRAM usage is expected to climb significantly. While automotive applications currently represent a smaller portion of overall memory consumption, the strong growth in AI and data center demand could potentially strain the production capacity available for automotive memory chips, exacerbating supply concerns and cost increases.