A deepening global memory chip shortage is beginning to raise serious concerns within the automotive industry, as surging demand from artificial intelligence (AI) applications increasingly crowds out supply. With software-defined vehicles (SDVs), advanced driver assistance systems (ADAS), and in-vehicle infotainment becoming mainstream, automakers are now facing mounting risks tied to memory availability, pricing, and product design.

With strong demand for AI servers, TSMC—holding the vast majority of AI chip orders—is executing major expansions in advanced process technology and packaging capacity. As TSMC and Nvidia light the way for AI development, related semiconductor and electronics suppliers across Taiwan are investing heavily to boost production capabilities in response to surging orders.

Nvidia, on January 26, unveiled a new family of open-source AI models aimed at making weather forecasting faster and less expensive as part of the company’s broader push to provide open-source software.

TSMC is now worth US$1.7 trillion. The chip giant has surpassed Broadcom and Meta to become the world’s sixth-largest company. But the milestone has triggered fresh concerns in Taiwan.