Samsung is considering a drastic shift in DRAM production lines to meet the demand for DDR modules, ensuring maximum profits in the ongoing memory supercycle.
Samsung Sees A 'Greater' Opportunity With DDR5 Over HBM Modules, But Most of the Production Will Go Towards AI
The memory shortages have reached an 'unprecedented' level, to the point where some of the RAM modules out there have crossed the $1,000 barrier, and by the looks of it, the supply is expected to remain constrained for several quarters ahead. In light of this, DigiTimes reports that one of the largest DRAM producers, Samsung, is looking to diversify its production by allocating a larger portion of output to DDR and LPDDR modules, as competition in the HBM segment has forced the Korean giant to take a hit on profitability. Meanwhile, DDR5 spot prices are reaching new highs with each passing day, giving the firm an optimal opportunity.
The official price of a 64GB RDIMM has risen from about US$265 in the third quarter of 2025 to US$450 in the fourth, nearly a 70% jump. DDR5 is now contributing more profit to Samsung than HBM3E, and future quarterly price increases could push modules toward US$500.
Samsung is expected to allocate a larger portion of production lines to the 1c DRAM technology, opening up more room for DDR5, LPDDR5X, LPDDR6, and GDDR7 modules. More importantly, the firm now sees a massive 75% gross margin with RDIMMs. The capacity shift will ultimately enable the Korean giant to earn more from the general-purpose DRAM segment than from HBM, but if you think gamers would benefit from this move, you might be wrong. Most of the production is expected to be allocated towards the AI segment, notably for CSPs and AI giants involved in data center buildouts, which will leave the consumer market in trouble.
This is one of the reasons why Micron decided to exit the consumer business, as demand from AI brings heavier gross margins and ultimately ensures that DRAM suppliers capitalize on the most out of this supercycle. It would be interesting to see how the situation turns out for gamers, as the market doesn't appear to be improving for now.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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