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As major players like Samsung and Micron scale back DDR4 production, driving prices up in recent weeks, rumors that a leading Chinese DRAM maker plans to phase out DDR4 production have sent spot prices soaring even higher, according to Nikkei.
The report suggests that spot prices for 8-gigabit DDR4 modules have surged by 100% in just a month. Notably, according to TrendForce’s latest memory spot price trend report, prices of DDR4 modules have climbed above those of DDR5 modules.
Looking ahead, the US could issue new tariffs or restrictions related to production capacity against China. This, in turn, may trigger another round of panic buying, TrendForce points out.
The average spot price of mainstream chips (i.e., DDR4 1Gx8 3200MT/s) has risen by 12.7% from US$4.575 the week before last to US$5.155 last week, as per TrendForce.
China’s Stragetic Shift in Production Plan
As South Korean media outlet New Daily revealed in May, China’s leading memory producer plans to gradually halt DDR4 production for servers and PCs by mid-2026. The official announcement of the discontinuation is expected in Q3 this year, the report added.
According to New Daily, the decision is part of the company’s strategy to pivot toward high-value, advanced products like HBM and DDR5. Before this shift, Chinese memory makers had reportedly shaken up the market by offering DDR4 chips up to 50% cheaper than their global competitors, as noted by Nikkei.
New Daily suggested that by year-end, the Chinese memory maker plans to shift 60% of its production to DDR5, while keeping some DDR4 lines active to support local fabless companies.
The shift by major memory makers is already making waves: in mid-June, Taiwan’s leading supplier, Nanya Technology, reportedly halted price quotes, signaling tighter supply and rising demand, according to Economic Daily News. Industry sources say this pause mainly affects the spot market, while in the contract market, suppliers are withholding inventory and steadily driving prices up.
As indicated by Commercial Times, Samsung had informed clients that its 8GB LPDDR4 chips, built on 1y and 1z nm processes, would reach End of Life (EOL) in April, with final orders reportedly due by June. Meanwhile, Micron’s Executive VP Sumit Sadana had revealed that the U.S. memory giant had already issued EOL notices for DDR4 and LPDDR4, with production expected to wind down after Q1 2026, according to IT Home.
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(Photo credit: Samsung)
