DRAM Prices Soar on China DDR4 Phase-Out Reports

According to recent reports, market concerns surrounding China's potential production shift have triggered a sharp surge in spot prices for one of the most widely used memory chips—DRAM. Specifically, the price of 8GB DDR4 memory modules has doubled in the past month following speculation that ChangXin Memory Technologies (CXMT) may begin phasing out DDR4 production by mid-2026.

DRAM (Dynamic Random Access Memory) chips are essential for temporary data storage in computers and household electronics, with DDR4 being a common standard in mainstream computing devices. On Wednesday, the unit price of an 8GB DDR4 module soared to approximately $4.90—more than twice its price a month earlier—before moderating slightly to around $4.65 by Friday.

CXMT, following in the footsteps of industry giants like Samsung Electronics, SK Hynix, and Micron Technology, has become a notable DDR4 memory manufacturer. Amid ongoing U.S.-China trade tensions, China has introduced subsidies to boost the purchase of domestically produced DRAM chips and support the local semiconductor ecosystem. According to an insider, CXMT claims its DRAM pricing undercuts foreign competitors by up to 50%.

Industry analysts project that CXMT could secure a market share approaching 15% this year. Meanwhile, Samsung, SK Hynix, and Micron have been shifting their focus to more advanced and profitable memory technologies such as DDR5 and high-bandwidth memory (HBM), which are critical to AI acceleration and data-intensive workloads.

Market participants were reportedly taken by surprise after reports suggested CXMT might also pivot toward these next-generation memory segments. However, a source familiar with CXMT's operations clarified that no official plans to halt DDR4 production have been announced.

Although spot transactions represent less than 10% of the global DRAM market, these prices are closely watched as indicators of broader pricing trends. Jun Okamoto of KPMG Japan noted that buyers typically procure memory from intermediaries rather than directly from manufacturers.

Other factors fueling the recent price rebound include stockpiling behavior by intermediaries anticipating DDR4 supply reductions. According to a senior executive at a tech trading firm, speculative buying by Chinese brokers is also contributing to the upward pressure.

While most DRAM trades are conducted through large monthly or quarterly volume contracts with OEMs and memory module manufacturers, spot market fluctuations often reflect broader sentiment. In May, the average bulk price for 8GB DDR4 was about $2.06—marking the second straight month of a 10% increase.

Okamoto emphasized that spot prices often serve as a benchmark for market direction. Another executive suggested that contract prices may continue trending upward in the near term.