DDR4 memory prices have skyrocketed, prompting manufacturers to resume production, as they aim to capitalize on the increased value of DDR4 over DDR5.
In a significant shift for the technology industry, major memory manufacturers such as Micron, Samsung Electronics, and SK Hynix have announced plans to phase out DDR4 production by the end of 2025 or early 2026. This move is in response to the growing demand for advanced memory technologies like DDR5 and LPDDR5X, which offer improved performance and energy efficiency.
Micron Technology has confirmed it will discontinue DDR4 production within the next two to three quarters from mid-2025, with the process expected to be mostly completed by late 2025 or early 2026. Samsung Electronics, too, has scheduled its last buy order for DDR4 in June 2025, with production set to cease by the end of the year. Other South Korean manufacturers like SK Hynix have similarly announced DDR4 production phase-outs since 2025, collectively reducing DDR4 supply.
The reduction in DDR4 production capacity has caused a dramatic spike in DDR4 prices in 2025. For instance, the spot price for 8Gb DDR4 modules surged about 38% in one month, from $2.73 at the end of May to around $3.78 by mid-June. Prices rose by nearly 8% in a single day, an unprecedented increase in over a decade. The tightened supply and industry-wide scaling back of DDR4 production have led Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs) to aggressively secure inventory, further fueling price rises.
Despite these price hikes, these levels have exceeded breakeven points for manufacturers, improving profit margins due to reduced depreciation costs and production process optimizations. However, normalization of DDR4 memory prices is expected, but it will take time for them to go back to their original levels. Pricing for DDR4 memory chips remains generally high due to stocking up by buyers.
This transition reflects the broader industry move towards advanced memory technologies. For instance, Intel's latest CPUs support DDR5, and AMD's Zen 4 processors and up only support DDR5. The AI boom is driving a massive demand for HBM chips, making it a lucrative market. As a result, major players are migrating their old DDR4 lines for HBM production.
Taiwan-based memory maker, Nanya, is benefiting from the price jumps due to its extensive DDR4 portfolio. Despite DDR4 being phased out, it is likely to continue being used for some time due to older technologies still relying on it. The complete phasing out of DDR4 memory production is a gradual process that will take some time before it truly disappears from the market.
| Aspect | Details | |----------------------------|--------------------------------------------------------| | **Phase-out timeline** | Mostly complete by end of 2025 to early 2026 | | **Key manufacturers** | Micron, Samsung, SK Hynix | | **Price impact** | DDR4 prices surged 30-40%+ since mid-2025 | | **Supply condition** | DDR4 availability extremely tight, causing inventory rush | | **Profitability** | Improved margins due to pricing and cost optimizations |
Gadgets reliant on DDR4 memory modules might experience increased costs with prices surging by 30-40% since mid-2025, as major manufacturers like Micron, Samsung, and SK Hynix are phasing out DDR4 production, marking a significant transition towards advanced memory technologies like DDR5 and HBM chips.
For data-and-cloud-computing applications, the shift in memory production could impact system upgrades and maintenance, as newer technologies like DDR5 may offer improved performance and energy efficiency, making it necessary for businesses to stay updated with the latest technology in the industry.
