Soaring Memory Chip Prices Hit BYD, ADAS Prices Increased

According to BYD Auto, the company announced a price adjustment notice on April 28, stating that rising global memory hardware costs are driving an increase in optional pricing for its “God’s Eye B (Tianshenzhiyan B) Laser Edition” advanced driver-assistance system across selected models under the Dynasty, Ocean, and Fangchengbao product lines.

Effective May 1, 2026, the optional price will be raised from RMB 9,900 to RMB 12,000, an increase of RMB 2,100. BYD clarified that customers who place deposits on or before April 30, 2026, will still be eligible for the original pricing.

The company explained that the adjustment is necessary to “address the significant rise in global storage hardware costs while maintaining product quality and delivering an improved user experience.” According to BYD, its assisted-driving fleet had exceeded 2.85 million vehicles by March 2026, with the “God’s Eye” system generating more than 180 million kilometers of driving data per day.

Memory Chip Price Surge Drives Cost Pressure

The price adjustment reflects ongoing cost pressure from the global semiconductor memory market. Since the second half of 2025, DRAM and NAND Flash markets have entered a strong upward pricing cycle, with major suppliers including Samsung, SK hynix, and Micron repeatedly raising contract prices.

Industry data from TrendForce shows that DDR4 and DDR5 memory—key components in automotive computing systems—have seen cumulative price increases exceeding 150% and 300%, respectively, between September 2025 and early 2026.

Advanced driver-assistance systems (ADAS), particularly those integrating LiDAR and AI-based models, require high-bandwidth DRAM to process real-time point cloud data and run large in-vehicle AI models. As a result, rising DRAM costs are directly increasing the bill of materials for intelligent driving configurations, with BYD’s adjustment reflecting the transmission of upstream semiconductor cost pressure to end-user pricing.

“God’s Eye B” System Specifications

The “God’s Eye” ADAS platform was officially launched by BYD in February 2025 as a full-stack self-developed intelligent driving solution, categorized into A, B, and C tiers. The B version targeted in this price revision represents a mid-to-high-end configuration.

It features a multi-sensor fusion architecture combining a single LiDAR unit, cameras, and millimeter-wave radar. The system is powered by NVIDIA Orin-X computing chips with approximately 254 TOPS of AI performance and is equipped with 16GB to 64GB of DRAM.

The system supports advanced functions such as urban NOA (Navigate on Autopilot), highway autonomous navigation, and full-scenario intelligent parking, and is widely deployed across BYD’s mainstream high-volume models.

Industry-Wide Automotive Price Adjustments

Despite the increase, the revised RMB 12,000 price remains competitive compared with industry benchmarks, where similar LiDAR-based advanced driving options typically range from RMB 15,000 to RMB 30,000.

BYD’s adjustment is also part of a broader industry trend. Since 2026, more than 15 new energy vehicle manufacturers have reportedly adjusted pricing or reduced promotional discounts, with increases ranging from RMB 2,000 to RMB 10,000.

Earlier this year, several automakers including Chery, Xiaomi, and Huawei ecosystem brands adjusted vehicle pricing due to rising component costs. Industry executives have increasingly pointed to memory chip shortages as a key cost driver.

NIO CEO William Li previously noted that rising memory prices could increase costs for high-end electric vehicles by RMB 3,000 to RMB 5,000, while indicating no immediate plan for price adjustments.

Semiconductor Cycle Pressure Extends to Automotive Sector

Industry participants also highlight that DRAM shortages are becoming increasingly severe. Beijing-based semiconductor company Beijing Junzheng recently stated that global DRAM supply remains tight, with prices continuing to rise and no signs of short-term easing.

Analysts expect the imbalance between supply and demand in automotive-grade memory chips to persist, reinforcing the upward pricing trend. Some industry executives suggest that sustained memory price increases may become a structural driver of semiconductor profitability.

Dongfeng Voyah leadership also emphasized that rising costs in batteries and memory chips are placing significant pressure on supply chains, with potential for further transmission to end-market vehicle pricing if cost inflation continues.

Market analysts note that declining automotive sector margins are increasingly linked to upstream semiconductor cost pressures, particularly in memory components, making cost control more challenging across the industry.