DDR4 memory prices experienced a sharp surge of 50% in the second half of May 2025, driven by major manufacturers discontinuing production in favor of DDR5 and escalating US-China geopolitical tensions.
G. Ostrov
DDR4 memory prices have experienced a \"rapid spike\" in the second half of May 2025, surging by approximately 50% according to Taiwanese tech industry journal DigiTimes. This dramatic increase resulted from several factors creating inflationary pressure in the DDR4 market.
Scale of Price Increases
Spot market data reveals impressive price growth:
- DDR4 8GB: from $1.75 to $2.73 (56% increase)
- DDR4 16GB: from $3.58 to $5.20 (45% increase)
Contract prices paid by technology manufacturers also skyrocketed by 22-25% for 8GB and 16GB chips compared to prices negotiated in early May. During Q3, DDR4 prices are expected to continue rising by an estimated 10-20%.
Causes of Sharp Price Increases
The primary cause of the price surge was major memory manufacturers\' decision to cease DDR4 production in favor of more profitable DDR5 lines. In February 2025, giants like Micron, Samsung, and SK Hynix began winding down DDR4 production due to competition from Chinese manufacturers CXMT and Fujian Jinhua, who were aggressively undercutting prices.
Samsung definitively ceased DDR4 production in early June, while Chinese CXMT received instructions from the Chinese government to also abandon DDR4 manufacturing. This created a \"perfect storm\" situation on the supply side.
Impact of Geopolitical Tensions
Additional price pressure comes from US-China tensions. Reports indicate DDR4 stockpiling due to concerns about US trade tariffs, contributing to increased demand and prices.
China\'s push for self-sufficiency in the semiconductor industry also affects global memory supply chains.
Future of DDR4 Market
Despite DDR4 and DDR5 prices converging (with only a 7% difference), experts believe \"the window for DDR4 profitability is closing fast.\" Nevertheless, some smaller manufacturers may continue DDR4 production for industrial and embedded platforms.
Intel Ice Lake and AMD Milan server platforms still use DDR4, and these servers are expected to continue deployment until at least 2026, providing residual demand for this memory type.
Detailed information about the memory market can be found on Tom\'s Hardware website.
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