According to multiple Korean media reports, due to insufficient supply of DDR4 DRAM memory chips, South Korean memory chip giants Samsung and SK Hynix, which had previously planned to phase out the chip, are now shifting their production plans and extending DDR4 production until next year. Both companies reportedly previously planned to stop DDR4 shipments between the end of 2025 and early 2026.

But according to the latest news from industry insiders, Samsung has extended its DDR4 production plan to 2026. SK Hynix has also done the same, and the company has informed customers that it will push its old Wuxi wafer fab to increase DDR4 production.

Reportedly, DDR4 shipments plummeted due to tight supply and rapidly dwindling inventory, pushing up DDR4 prices. Furthermore, DDR5 prices are also climbing amidst supply constraints, highlighting the continued demand for legacy products.

DDR4 shortage triggers price surge

DDR4, first introduced in 2014, has now reached over 10 years of lifespan, while its successor, DDR5, has already achieved mass shipment verification. Against this backdrop, major memory manufacturers are gradually halting their DDR4 production plans, a necessary step in the evolution of technology.

However, why did the memory giants suddenly change their DDR4 phase-out plan? The key reason is that DDR4 prices have soared, and even a rare "price inversion" has occurred.

According to reports, Samsung, SK Hynix, and Micron had already told their customers that they would gradually reduce DDR4 production in early 2024. However, the surge in demand for HBM caused the situation to develop beyond plan: as we all know, HBM production usually consumes about three times as many wafers as standard DRAM. Therefore, when memory giants are actively producing HBM chips, the resources left for traditional DDR4 are becoming less than originally planned.

At the same time, Chinese DRAM manufacturers such as Changxin Memory have announced that they will stop DDR4 production this year and accelerate the transition to DDR5.

These two pressures have led to a sharp tightening of DDR4 supply and triggered panic buying among some consumers, resulting in DDR4 prices now exceeding DDR5 - even though DDR5 runs about twice as fast as DDR4 and is 30% more power efficient.

A rare "price inversion"

According to TrendForce survey data, since June this year, the price of DDR4 16GB (spot) has surpassed the price of DDR5 16GB (spot), and this "price inversion" phenomenon has lasted for nearly three months.

By the end of August, the prices of these two products increased from US$7.01 (DDR4) and US$5.85 (DDR5) in June to US$8.59 (DDR4) and US$6.17 (DDR5) in August, and the price gap continued to widen.

The rare inversion has prompted memory makers to keep older production lines running to lock in higher profit margins.

TrendForce's latest survey results show that by the second half of 2025, the DDR4 market will continue to be in a state of insufficient supply and strong price growth.

How long can the “price inversion” last?

However, unlike Samsung and SK Hynix, Micron appears to be sticking to its original production suspension plan.

According to Sumit Sadana, executive vice president and chief business officer of Micron Technology, the US memory giant had already issued end-of-life (EOL) notices for DDR4 and LPDDR4 in June, and the company's DDR4 shipments are expected to end within 2-3 months.

On the other hand, analysts believe that the current rare price inversion will not last long. According to reports, when DDR2 was phased out of production, a similar situation of DDR2 prices being higher than DDR3 prices occurred, which lasted for nearly four months.

SK Hynix executives reportedly echoed this view during a July 24 earnings call, calling the recent surge in DDR4 prices a "short-term demand surge driven by supply concerns."

Overall, Samsung currently holds a larger share of commodity DRAM production and is seen as the main beneficiary of rising DDR4 prices. Meanwhile, SK Hynix could also benefit if it significantly increases DDR4 production at its Wuxi fab.