As chip prices surge, EV maker Ultraviolette is working on ways to absorb costs
Global memory chip shortages driven by AI data centre expansion have inflated costs significantly, with RAM alone adding Rs 20,000 to electric motorcycle prices. Ultraviolette's founder notes that AI data centres are projected to consume 70% of global memory chip production by 2026. Rather than raising customer prices proportionally, the company is exploring alternative parts, software solutions, component suppliers, and manufacturing partnerships with stakeholders like TVS, TDK Ventures, and Intel to absorb rising input costs.
Key points
- Memory chip costs surging due to AI data centre demand
- AI data centres expected to consume 70% of chip production by 2026
- Ultraviolette absorbing costs via alternative sourcing and partnerships
- RAM costs alone add Rs 20,000 per EV motorcycle
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