Samsung and SK Hynix Extend DDR4 Production Again

According to Korean media reports, Samsung Electronics and SK Hynix have decided to extend DDR4 memory production into next year, even though they originally planned to phase it out by 2025 in favor of DDR5. Both companies have declined to officially comment on the matter.

DDR4, introduced in 2013, was expected to wind down this year as DDR5, launched in 2022, takes over the market. Earlier this year, major memory makers including Samsung, SK Hynix, Micron, and several Chinese companies had already informed customers of their plans to gradually stop producing DDR4.

However, shrinking supply has driven DDR4 prices above DDR5 in an unusual market shift. TrendForce data shows DDR4 16GB 2Gx8 spot prices overtook DDR5 in June and have maintained the lead for three straight months, widening the gap from $7.01 (DDR4) vs. $5.85 (DDR5) in June to $8.59 (DDR4) vs. $6.17 (DDR5) in August.

This rare reversal is largely due to profitability: older DDR4 chips have already absorbed depreciation costs, making them more lucrative than newer DDR5 models. At the same time, the boom in AI-driven data centers has kept DDR4 demand steady for servers, adding further incentive to continue production.

Industry observers believe this price inversion is temporary, similar to the short-lived reversal during the DDR2-to-DDR3 transition. In the long run, the market is still expected to fully shift to DDR5. For now, though, Samsung and SK Hynix are both well positioned to benefit from DDR4's extended lifecycle, with Samsung likely to see the biggest gains, while SK Hynix's expanded DDR4 output from its Wuxi plant also promises solid returns.