DDR4 Chip Prices Surge 50% in Late May

According to recent reports, DDR4 memory chip prices are experiencing a sharp and rapid surge, with spot market prices rising by approximately 50% in the second half of May alone. Several key factors are contributing to this upward trend, signaling a significant shift in the memory chip landscape.

Contract prices for 8GB and 16GB DDR4 chips negotiated by tech manufacturers have reportedly soared by 22% to 25% compared to early May. Analysts predict that DDR4 prices may continue to rise by an additional 10% to 20% in the third quarter of the year.

The surge in DDR4 pricing has been attributed to a combination of confirmed supply-side dynamics. Major semiconductor manufacturers are gradually phasing out DDR4 production lines in favor of DDR5 and other next-generation memory technologies that promise higher margins. Industry leaders such as Micron and Samsung are increasingly losing ground in the DDR4 segment due to aggressive pricing strategies adopted by Chinese memory producers, who have intensified competition through low-cost offerings.

A pivotal moment occurred in late April when reports emerged that Samsung plans to cease DDR4 production by early June—news that triggered significant market volatility. Recent developments also suggest that Chinese manufacturers may follow suit in halting DDR4 output. These simultaneous supply contractions have created what some are calling a “perfect storm,” accelerating the price hikes seen in recent weeks.

However, the rise in DDR4 prices cannot be attributed solely to production cuts and speculative activity in the spot market. Geopolitical tensions, particularly between the U.S. and China, are also playing a role. For instance, U.S. tariff policies have sparked a wave of inventory hoarding across the DDR4 market, further intensifying upward pricing pressure.

Despite narrowing the price gap between DDR4 and DDR5 to less than 7%, industry experts warn that “the profitability window for DDR4 is closing rapidly.” While leading DDR4 manufacturers are exiting the market, niche opportunities may still exist for smaller players. These companies could continue serving industrial and embedded systems that remain reliant on DDR4 memory.

Notably, platforms such as Intel's Ice Lake and AMD's Milan server architectures still utilize DDR4, with deployments expected to extend through at least 2026.