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DDR4 memory’s production is set to end this year, with major manufacturers like Micron, Samsung, and SK Hynix discontinuing their production. This shift signals the industry’s advancement towards newer, more advanced DDR5 and high-bandwidth memory (HBM) technologies.
Micron has reportedly sent official notices to its customers, confirming that its DDR4 memory will reach “End-Of-Life” status, with shipments gradually declining over the next six to nine months. They are encouraging customers to transition to DDR5 or LPDDR5. Micron’s Chief Business Officer, Sumit Sadana, even anticipates significant supply gaps for DDR4, potentially making it more expensive than DDR5.
Previously, Samsung also announced in April that it would stop making DDR4 chips this year (2025), with final orders expected in early June and last shipments by December 2025. Their focus shifts to the more profitable DDR5, LPDDR5, and HBM memory.
SK Hynix is also reducing its DDR4 output and accelerating its shift to AI memory, aligning with the other major players.
DDR5 and HBM offer significantly better profit margins for manufacturers. The demand for these advanced memory types, particularly for AI and data center applications, is surging, making it a more lucrative market.
Chinese DRAM makers like CXMT (Changxin Memory Technology) and Fujian Jinhua have been aggressively producing and pricing DDR4 memory, undercutting the established players. This intense competition in the DDR4 market has likely made it less attractive for the “big three” to continue production.
The major manufacturers prioritize resources towards high-end and specialized memory solutions like HBM, which are crucial for AI, machine learning, and other high-performance computing tasks.
Despite the impending end of production, demand for DDR4 memory remains surprisingly high. This, coupled with the decreasing supply from major manufacturers, has led to significant price increases. Reports indicate a 50% jump in DDR4 spot market prices in the latter half of May alone, with contract prices also skyrocketing. The market is expected to face major supply gaps for DDR4 chips in the coming months, which could further drive up prices.
*With the “big three” exiting the DDR4 market, Taiwanese manufacturers like Nanya Technology and Winbond Electronics are expected to pick up some of the slack. However, it’s uncertain if they can fully meet the demand.
Millions of existing PCs, workstations, and server infrastructures still rely on DDR4. This creates a challenging situation where demand for the older technology persists while production dwindles.
