Micron has announced it will soon discontinue its DDR4 memory production, despite ongoing demand. As DDR4 production ramps down, companies like CXMT (ChangXin Memory Technologies) will step in to meet the demand. However, prices for DDR4 are expected to rise in the coming months as a result. Major memory manufacturers, including Samsung and SK Hynix, are focusing on more profitable and advanced memory types like DDR5 and LPDDR5, which are currently seeing booming demand.
To make way for these new technologies, they have significantly reduced their DDR4 production.
Although DDR4 memory will still be produced for a while, its manufacturing will be scaled back sharply in the coming months. Samsung recently confirmed that it is halting DDR4 production in favor of the cutting-edge DDR5 memory. Similarly, Micron has announced that its DDR4 mass production will decrease dramatically before the end of the year, according to reports from Digitimes.
This shift leaves the smaller players, such as CXMT, to fill the gap. Over the past few years, CXMT has rapidly expanded its DDR4 production capabilities. Taiwanese manufacturers like Winbond and Nanya have also stepped up their DDR4 manufacturing, ensuring they can handle the shortfall when giants like Samsung and Micron exit the DDR4 market.
The decision to discontinue DDR4 isn’t because demand is waning but rather because faster and more profitable memory types like DDR5, LPDDR5, and HBM are taking center stage. Micron, for instance, has already started sampling its next-gen HBM4 memory, designed with an impressive 2048-bit interface for AI server use.
As DDR4 becomes less profitable compared to newer memory types, major manufacturers are shifting focus. Still, with millions of DDR4-compatible systems still in circulation, demand for DDR4 memory will persist for some time. While DDR4 from Chinese manufacturers like CXMT is more affordable, Micron’s CBO, Sumit Sadana, warns that DDR4 will face major supply shortages, driving prices up, potentially even higher than DDR5 and LPDDR5 prices.