AI Data Center Boom Risks Roiling Global Carmaker Supply Chains

The auto sector is bracing for yet another potential supply chain disturbance, this time spurred by the rush to build data centers that train and develop artificial intelligence models.

A shortage of memory chips caused by the data center boom already is leading some industry participants to acknowledge more than 100% price hikes, UBS analysts led by David Lesne wrote in a report Tuesday. Disruptions could kick in starting in the second quarter, he warned.

“We would not rule out some material downside risk” to global vehicle production, Lesne said.

The specific type of semiconductors at issue are dynamic random-access ...