Samsung, Micron Halt DDR4 Production; Prices Surge 8%

Due to a significant reduction in DDR4 supply combined with aggressive buying from large, undisclosed market players, spot prices for 8Gb and 16Gb DDR4 DRAM have surged by nearly 8% in a single day, an increase that has stunned industry observers. Leading manufacturers like Samsung, Micron, and SK Hynix are shifting their focus toward DDR5 and high-bandwidth memory (HBM) segments, progressively discontinuing DDR4 production. This strategic pivot has caused a sharp rise in DDR4 spot prices, though previous daily increases typically hovered below 2%.

According to the latest data from DRAM pricing specialist DRAMeXchange, the evening of June 13 witnessed a broad and rapid price escalation in DDR4 spot markets. Specifically, the DDR4 8Gb (1G×8) 3200 MT/s modules jumped 7.8% to an average price of $3.775, DDR4 8Gb (512M×16) 3200 MT/s rose 7.99% to $3.824, and DDR4 16Gb (1G×16) 3200 MT/s climbed 7.9%, reaching an average of $8.20.

Historically, a daily price increase exceeding 5% in the DRAM market is considered exceptional, often triggered by major disruptions such as factory incidents or natural disasters. The current phenomenon where DDR4 prices not only surpass those of the more advanced DDR5 but also spike nearly 8% within a day is unprecedented in recent memory, with industry insiders noting it's the largest daily surge in over a decade.

Over a longer timeframe, DDR4 16Gb (1G×16) 3200 MT/s spot prices have risen from $6.10 on May 30 to $8.20, marking a 34.42% increase within just half a month. Since March 31, the price has more than doubled, climbing 107%. Similarly, DDR4 8Gb (1G×8) 3200 MT/s prices jumped from $2.73 on May 30 to $3.775 in June, a 38.27% increase in two weeks and a 132% rise since late March.

Market analysts attribute this surge to the ongoing phase-out of DDR4 production by major manufacturers, sparking concerns over future supply shortages and intensifying buying activity. The sudden surge in demand suggests that OEM and ODM manufacturers are actively securing DDR4 inventories to ensure production continuity. In Taiwan, for example, inventory levels at suppliers such as Nanya Technology are rapidly depleting, with production capacity already pre-booked by customers, pointing to sustained upward trends in both DDR4 prices and shipment volumes for the remainder of the year.

Nanya Technology and Winbond Electronics, key players in DDR4 production, are positioned to benefit from this pricing momentum. Notably, Nanya has historically derived up to 80% of its revenue from DDR3 and DDR4 products. Recent reports indicate the company is expanding legacy DDR4 production capacity—an uncommon move as the memory industry typically invests in newer generation technologies—signaling strong confidence in DDR4’s continuing market demand.

Additionally, memory IC design companies like Etron Technology and GigaDevice Semiconductor have reportedly started receiving increased customer orders, suggesting their business operations may gradually improve and also benefit from the rising DDR4 market.

Currently, DDR4 spot prices have surged back to levels last seen in the first quarter of 2022.