June 28, 2026 | Bonus Episode: Who wins and loses when AI dominates the chip supply?
About this episode
AI-driven demand for computer chips—especially DRAM—is reshaping the auto supply chain and changing who pays, who adapts, and who gets squeezed. DRAM prices have surged as AI infrastructure buyers outbid other sectors, leaving automakers facing “hundreds of millions of dollars in losses.” The discussion weighs automakers’ relative position versus EV makers’ “structural advantage” in securing supply, and explores how memory costs can drive decontenting of infotainment and ADAS, with tier ones absorbing much of the pressure.
Kearney partner Kushal Fernandes breaks down which industries are best — and worst — positioned to survive the DRAM memory chip shortage, why the auto industry lands in a surprising middle ground and what structural advantages electric vehicle makers have over traditional automakers when it comes to securing supply.
Dodge Ram
"...ire a minimum of one gigabyte to two gigabytes of RAM to operate for you to be able to connect to the i..."
The Dodge Ram is a large pickup truck used for tasks like carrying cargo and towing trailers. It also has a built-in screen and electronics for things like navigation and phone connections. If the podcast is talking about memory or connectivity, it’s likely referring to the truck’s infotainment system needing enough resources to run those features.
The Dodge Ram is a full-size pickup truck built for hauling, towing, and everyday driving. It’s often discussed because it combines work-focused capability with modern comfort and technology, including infotainment and connectivity features. In a tech-related segment, it may come up when talking about how the truck’s systems require certain hardware resources to run apps or connect properly.
ADAS
"I mean, the features that require memory, [293.3s] as I said, advanced infotainment, ADAS."
ADAS means “driver-assistance tech.” It’s the stuff in modern cars that helps you drive—like keeping you in the lane or braking automatically if there’s danger. Because it has to think quickly, it needs enough computer power and memory.
ADAS stands for Advanced Driver-Assistance Systems. It’s the suite of electronics and software that helps with tasks like adaptive cruise control, lane keeping, and automatic emergency braking. These features often need fast, reliable computing and memory to process sensor data in real time.
advanced infotainment
"I mean, the features that require memory, [293.3s] as I said, advanced infotainment, ADAS."
Infotainment is the car’s entertainment and information system—like the touchscreen, navigation, and music apps. “Advanced” infotainment usually means it’s more powerful and does more things, so it needs more computer memory.
Advanced infotainment refers to the car’s in-cabin media and connectivity system—bigger screens, faster interfaces, navigation, streaming, and often app-like features. Compared with older systems, it typically uses more compute and memory to run graphics, voice interfaces, and connected services smoothly.
decontenting
"then you consider decontenting [301.1s] or taking out those features"
Decontenting means taking features out of a product to save money. If chips are expensive or hard to get, a carmaker might remove some tech so the car doesn’t need as much of those parts.
Decontenting is the practice of removing features or equipment from a product to reduce cost—often when supply constraints or component shortages raise prices. In this context, automakers might remove memory-hungry features (like certain infotainment or ADAS functions) to avoid needing as much expensive chip capacity.
tier one suppliers
"Because I would think it would be [313.1s] sort of tier one suppliers who would be dealing [315.4s] with the brunt of that cost pressure,"
Tier one suppliers are big companies that make major parts that go straight into cars. If a key chip gets more expensive, these suppliers often feel the cost pressure first because they’re the ones building the tech modules.
Tier one suppliers are companies that deliver major subsystems directly to automakers—often including electronics, software platforms, and modules used in ADAS and infotainment. When chip costs rise, these suppliers are frequently the ones absorbing the impact first, because they build and supply the hardware/software that needs the memory.
OEM
"but it sounds like you're talking about OEMs. [318.8s] Yeah, I'm talking about OEMs, yes."
OEMs are the car companies that build the vehicles. The question is whether the automaker has to pay the extra chip costs, or whether the companies that supply parts pay first. Sometimes the OEM can negotiate or reimburse suppliers.
OEMs means Original Equipment Manufacturers—the automakers themselves. The discussion here is about who bears chip-related cost pressure: whether it’s the automaker (OEM) or the supplier chain (tier ones) that has to pay for more expensive memory. OEMs can sometimes manage this by controlling software stacks or negotiating reimbursement.
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