In an unexpected strategic shift, global memory giants Samsung Electronics and SK Hynix have reversed their plans to phase out DDR4 memory. Citing severe market shortages and surging prices, both companies announced they will now continue DDR4 production into 2026, with SK Hynix specifically increasing output at its factory in Wuxi, China.
The decision stems from a dramatic shift in market fundamentals. A significant global supply gap for DDR4 has emerged, driving its price to surpass that of the newer DDR5. This creates a highly profitable opportunity for the manufacturers, as they can continue using existing, fully depreciated production lines without major new investments. The companies had initially planned to wind down DDR4 shipments between late 2024 and early 2026.
The DDR4 shortage is not accidental. It results from a perfect storm: major producers like Samsung, SK Hynix, and Micron had previously cut DDR4 production, while the booming demand for High Bandwidth Memory (HBM) for AI consumes about three times the wafer capacity of standard DRAM, further squeezing DDR4 output. Simultaneously, Chinese DRAM suppliers have largely stopped DDR4 production to transition to DDR5 with government support, removing a key source of supply and exacerbating the global shortage.
While extending DDR4 life, both companies maintain their focus on next-generation products. Samsung will prioritize DDR5, LPDDR5X, and GDDR7, while SK Hynix remains heavily invested in HBM and is also increasing DDR5 supply. The move to keep DDR4 online represents a pragmatic response to immediate, high-margin market demand while advancing their long-term technology roadmaps.
ICgoodFind's Insight
The extension of DDR4 production is a clear example of market economics overriding planned technology obsolescence. It highlights how sustained demand and supply constraints can create profitable "second lives" for mature technologies, even as the industry charges toward newer standards.
