The market for memory chips inside vehicles is becoming a new battleground for the world’s top semiconductor makers, with Samsung Electronics, SK Hynix and Micron Technology all jockeying for leadership as autonomous driving and advanced in-car software increase the amount of data cars must store and process.
Memory demand is rising sharply as modern vehicles move from basic electronics toward systems running artificial intelligence and complex infotainment. Industry sources say the amount of DRAM needed in premium cars is climbing fast: Mercedes-Benz’s AI-powered operating system, MB.OS, is reported to require about 4 to 12 GB of DRAM, while BMW’s new electric SUV, the New iX3, is expected to use around 16 to 24 GB for its BMW Operating System X. Compared with just a few years ago—when automotive DRAM was closer to 1 to 2 GB—these requirements represent a significant jump.
NAND flash storage is also growing quickly. With autonomous driving features and other AI functions generating and handling far more data in real time, high-end vehicles are projected to use several hundred gigabytes of NAND flash, potentially reaching more than 1 TB. Micron’s chief executive, Sanjay Mehrotra, said that “Level 2+” and higher autonomous vehicles need more than five times the memory and storage of conventional vehicles, and that capacity requirements are likely to keep expanding as systems become more capable.
That surge in demand is beginning to strain supply in specific segments. SLC NAND—short for single-level cell, which stores one bit per cell—faces particular pressure because it is prized for automotive electronics. Compared with other NAND types, SLC offers faster processing, better endurance and reliability, making it valuable for electronic control units (ECUs) and advanced driver-assistance systems (ADAS). A market outlook by TrendForce suggests SLC NAND could face a structural supply shortage in the second half of 2026, with prices expected to rise between 120% and 170% in the second half of the year versus the first half.
In DRAM, Samsung has taken the lead. According to S&P Global Mobility, Samsung captured about 40% of the global automotive DRAM market last year, the first time it has held the top position since entering the sector in 2015. The company is reported to have expanded particularly quickly in China, where EV growth is accelerating, aided by low-power DRAM such as LPDDR5X and next-generation UFS storage.
Micron, meanwhile, is focused on stabilizing demand through long-term customer relationships. The company has secured supply contracts lasting at least three years with U.S. automakers including Ford and General Motors, and its automotive and embedded business recorded record third-quarter fiscal 2026 revenue of $4.6 billion. SK Hynix is also expanding its automotive memory push, offering products including HBM2E, LPDDR and UFS 3.1, while leveraging its leadership in AI server HBM technology.
Analysts note that vehicles typically have longer product lifecycles and longer supply arrangements than consumer electronics or AI servers, meaning any lead in automotive memory could be reinforced over time. With autonomous and software-driven cars moving toward higher memory and storage “levels,” competition among the three companies is expected to intensify further heading into the period when supply pressures—especially in SLC NAND—could translate into higher costs.
