With increase in demand and profits in HBM and DDR5 memories, major DRAM manufacturers are about to discontinue the production of DDR4 and DDR3 memories.
As Samsung, Micron, and SK Hynix are About to Exit DDR4/DDR3 Market, Chinese and Taiwanese Players May Fill the Gap for the Upcoming Demands
Last year, Samsung ceased the production of DDR3 memory due to dwindling demand and while other major manufacturers have also almost discontinued the production of DDR3 memories, DDR4 is about to see the same fate this year. The former is almost 18 years old and the latter was debuted in 2014. With over a decade of dominance in the mainstream hardware market for consumer devices, DDR4 is almost reaching the end of its life.
DDR5 has been donig quite well after entering the mainstream consumer electronics market and even though DDR4 enjoys a bigger share, the supply for the latter is about to get reduced noticeably in the second half of 2025. DigiTimes reports that due to reduction in demand and profits in DDR4 and DDR3 DRAM, major memory makers such as Samsung, Micron, and SK Hynix may stop production of these memories altogether.
This comes as a result of higher demand for HBM and DDR5 memories, which are seeing huge demand in both client and sever market. Since the memory giants are focusing on delivering more and better DRAM chips to their customers, they have shifted their focus to DDR5 and HBM memories, leaving DDR3 and DDR4 for smaller players.
As far as the demand and supply for DDR4 and DDR3 go, they will be still in good demand as the majority of users own systems with either of these memory type. Therefore, Chinese players such as CXMT are looking forward to increasing their global market share by expanding the DDR4 production while also focusing on DDR5 simultaneously.
On the other side, Taiwanese memory makers such as Nanya Technology and Winbond are also expected to fill the supply gap that will take care of DDR3/DDR4 market. It's expected that the memory giants Samsung, Micron, and SK Hynix will cease the production of DDR3 and DDR4 memories in the second half of this year, which will likely introduce some supply constraints initially. On the other hand, the higher demand in AI & Cloud computing is encouraging them to produce faster memory chips like HBM on a larger scale.
News Source: DigiTimes
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