Samsung Delays DDR4 Shutdown

Samsung has postponed the planned shutdown of its DDR4 memory production lines, initially announced earlier in 2025. The decision comes as 16GB DDR4 modules hit a record high of $60, making the market unexpectedly profitable for the older memory standard. Despite this, Samsung has no plans to build new DDR4 lines to meet growing demand.

Meanwhile, one client has secured DDR4 supply through an NCNR (non-cancelable, non-returnable) agreement. This contract guarantees a fixed quantity at a fixed price, shielding the client from the current market volatility driven by AI-driven memory demand. It also allows Samsung to maintain profitability on its DDR4 line, even if AI-related hype fades and HBM and DDR5 memory prices decline.

Sources suggest NCNR contract prices could exceed $20 per 16GB module, with Samsung evaluating further adjustments. However, these deals primarily target industry applications; no consumer-focused companies have signed long-term DDR4 agreements. As a result, the broader memory shortage affecting PCs and DIY builds is unlikely to ease in 2026.

Originally, Samsung intended to phase out DDR4 production to focus on HBM and DDR5. Yet, surging AI demand for HBM has pushed DDR5 prices up, inadvertently boosting interest in DDR4. Consequently, major memory manufacturers have delayed DDR4 line closures. The increased DDR4 output will mainly serve enterprise clients, meaning consumer access will remain constrained despite higher production.