With Micron stepping away from DDR4 production, the market is turning to Chinese manufacturers like CXMT to meet the ongoing demand. However, brace yourself—DDR4 prices are expected to rise in the coming months.
Micron joins Samsung and SK Hynix in prioritizing newer memory technologies such as DDR5 and LPDDR5. These advancements promise higher profits and are experiencing a surge in demand. As a result, these companies are shifting their focus and reducing their DDR4 production significantly.
Recently, Samsung decided to cut back on DDR4 in favor of DDR5, and now Micron is following suit. Reports suggest that while Micron’s DDR4 production will continue for a while, it will see a drastic reduction by year’s end. This shift opens the door for smaller players like ChangXin Memory Technologies (CXMT), which has been increasing its DDR4 output.
In response, Taiwanese firms like Winbond and Nanya are expanding their DDR4 operations, preparing to bridge the gap left by the industry giants’ exit. The choice to reduce DDR4 production stems not from lack of demand but from the appeal of newer, faster memory solutions. DDR5, LPDDR5, and high-bandwidth memory (HBM) are at the forefront, with companies ramping up production to meet consumer and client needs.
Micron is already showcasing its next-gen HBM4 memory, featuring a remarkable 2048-bit interface for AI servers. With these swift memories offering greater profitability, the DDR4 landscape is set to change dramatically this year.
Despite these changes, the demand for DDR4 remains, fueled by the millions of compatible systems still in use. Although production shifts to Chinese manufacturers may result in lower costs, supply shortages are expected. Sumit Sadana, Micron’s Chief Business Officer, warns that these gaps could make DDR4 more expensive than its newer counterparts, DDR5 and LPDDR5.
