DDR4 Prices Surge 200%, Some Firms Restart Production

Due to tightening supply, DDR4 memory chip prices have surged steadily over the past few months. Leading DRAM manufacturers—Micron, Samsung, and SK Hynix—announced earlier this year that they would phase out DDR4 production by the end of 2025. In May, several Chinese memory makers followed suit with similar discontinuation plans. As a result, DDR4 chip prices have tripled in just two months, now even surpassing DDR5 in cost.

According to ComputerBase, the price of a single 8GB DDR4-3200 chip has climbed above $5, compared to just $1.75 in late April. Dual-pack DDR4 memory modules have also seen prices soar from $3.57 to an average of $8.80—an increase of over 100%.

This sharp price hike has prompted some smaller semiconductor manufacturers to restart or expand DDR4 production, recognizing the renewed profitability. Notably, Nanya Technology, known for its broad DDR4 portfolio, is benefiting from this trend. The company's limited DDR5 offerings and lack of LPDDR5 production have further magnified the price impact.

In contrast, major memory makers like Micron are unlikely to return to DDR4 manufacturing, as they are reallocating idle capacity to support newer technologies such as DDR5 and high-bandwidth memory (HBM), which are in growing demand—particularly in AI-related applications.

Following the latest production activity updates, some DDR4 module prices have experienced slight corrections, though overall pricing remains elevated. Many buyers appear to be stockpiling DDR4 components ahead of the expected production halt.

While prices may normalize as smaller firms ramp up output, a return to pre-surge levels could take time.

DDR5, officially introduced by JEDEC in 2020, has now been in the market for five years. It is the exclusive memory supported by Intel's latest CPUs and AMD's Zen 4 and newer architectures. Additionally, the booming AI sector has transformed HBM demand into a high-value market, accelerating the industry's shift away from legacy DDR4 lines.

Despite this transition, DDR4 continues to serve legacy systems, delaying its full phase-out. However, the industry is clearly moving toward a DDR5 and HBM-centric future.