# Chip scarcity assaults auto industry amid the worsening Nexperia and DRAM crisis — fragile sector rocked by undersupply, which may end worse than the 2021 shortage ## The situation is grave The crisis is hitting the automotive industry in full swing, when component inventories are already limited. The industry is therefore particularly vulnerable to market fluctuations and logistical challenges. ## The cause of the crisis The primary cause of the crisis is the increasing demand for DRAM, which is growing rapidly due to the increasing use of AI in production. This has led to a rapid scaling up of AI infrastructure, which requires more components and electronics. ## Consequences Consequences are still uncertain but seem very severe. The automotive industry may have to face several problems, including reduced chip stock, increased prices, and difficulty in meeting customer demands. ## Context The automotive industry is a highly competitive sector sensitive to market fluctuations. The chip crisis hits the industry in full swing, when component inventories are already limited. This means that the industry stands on the brink of a tightened supply, with dwindling stocks.