Amidst the current memory shortages, DDR4 technology is experiencing a resurgence. Reports suggest that Samsung is opting to extend the life cycle of DDR4 memory in response to heightened demand in the market.
Samsung’s Strategic Shift: DDR4 Production Extended
The DRAM supercycle has thrown the memory supply chain into disarray, creating challenges for manufacturers trying to meet the booming demand from the AI industry. General-purpose DRAM products, along with HBM, are facing production bottlenecks. As a result, major players like Samsung, SK hynix, and Micron are implementing ’emergency steps’. Reports indicate that Samsung intends to delay the end-of-life phase for DDR4 memory, driven by sharply rising contract prices. However, this production will primarily cater to server-grade clients.
Samsung Electronics will slow down the pace of DDR4 end-of-life (EOL) production in the fourth quarter of 2025 and will sign long-term supply contracts with specific customers in the first quarter of 2026, with fixed supply conditions that “cannot be cancelled or changed.
– DigiTimes
Samsung is reportedly introducing a “Non-Cancellable and Non-Returnable” contract, allowing it to secure demand for DDR5 and DDR4 products without fear of customer divergences. Such contracts will lock in pricing based on the current market situation, shielding it from fluctuations. Although DDR4 memory was previously on the verge of being phased out, the sudden scramble to acquire it has led Samsung to sustain production.
The Consumer Impact: Potential Price Hikes
For consumers, DDR4 modules have been a practical choice amid the memory shortages, as they haven’t experienced significant price surges. Yet, with the current market dynamics, DDR4 may soon become less affordable. There is a noticeable trend toward DDR4, as evident by the rising interest in AMD’s AM4 platform, driven by PC users eager to upgrade or create new configurations.
The outlook for the DRAM supply chain remains grim, and it seems that companies like Samsung are likely to prioritize more lucrative sectors, such as AI, over consumer markets. Reports highlight that the AI sector offers significantly higher profitability.