Aumovio Warns AI Demand Will Spike 2027 Chip Costs
Aumovio warns that AI data center demand will drive chip costs up in 2027, potentially reducing the supplier's gross earnings by 1 billion euros.
Aumovio, a German automotive supplier spun off from Continental, warned that surging demand for AI data centers will cause chip costs to rise sharply in 2027. The company expects this price spike to impact its gross earnings by approximately 1 billion euros.
Interim head of finance Claus Bauer stated that chipmakers have gained significant pricing leverage because data centers lack price sensitivity. Bauer noted that allocated chip capacity for data centers could double, leaving automotive customers unable to compete on price. To offset these costs, Aumovio plans to redesign products, reduce spending, and raise prices for clients including BMW, Volkswagen, Ford, and BYD.
This outlook aligns with warnings from other industry leaders. SK Hynix CEO Kwak Noh-jung predicted 2027 would be the worst year for memory supply in industry history, while Logitech CEO Hanneke Faber noted that AI demand has made chips scarce with little near-term relief expected.
