Samsung and SK Hynix delay their DDR4 memory phase-out due to rising demand
Manufacturers reportedly delay their DDR4 memory phase-out due to rising prices
According to a report from Digitimes, both Samsung and SK Hynix have reportedly delayed their planned DDR4 memory phase-out. This is due to higher-than-expected levels of demand and rising spot prices for DDR4 DRAM chips.
In some cases, DDR4 spot prices are higher than DDR5. This is giving DRAM manufacturers plenty of reasons to keep producing DDR4 memory, at least for now. DRAM manufacturers are walking a fine line between satisfying DDR4 demand and overbloating their DRAM inventories. The technology sector is moving past DDR4, but that doesn’t mean the memory type isn’t useful for maintaining or building legacy products or upgrading older systems.
If Samsung and SK Hynix aren’t careful, the short-term gains of elevated DDR4 spot prices could become a long-term headache. Delaying their DDR4 phase-out may be good news in the short term, but in the long term, it could be a problem if either company overbloats its inventories. After all, they are phasing out their DDR4 production for a reason.
DDR4 customers have been told to transition to newer DDR5 or LPDDR5 DRAM modules. These modules offer users increased bandwidth and enhanced power efficiency. However, moving a product from DDR4 to DDR5 isn’t a simple process, which means that there will be demand for DDR4 DRAM for some time to come. This demand has led to increased DDR4 memory prices, as new DDR4 memory modules soon become increasingly hard to find. This will give DDR5 increasingly attractive pricing and performance characteristics, encouraging users to switch. However, those who do not plan to switch away from DDR4 in the near future need to stockpile to prevent future manufacturing issues.
Samsung and SK Hynix are playing a risky game. If they overproduce, DDR4 pricing will plummet, making it unprofitable. Overproduction will also slow down the move to DDR5, which is bad news for memory producers. As always, DRAM manufacturers care more about making money than making memory.
You can join the discussion on Samsung and SK Hynix reportedly delaying their DDR4 DRAM phase-out on the OC3D Forums.
