The memory market is experiencing a notable shift as demand rises for High Bandwidth Memory (HBM) and DDR5, prompting major DRAM manufacturers to phase out DDR3 and DDR4 production. Companies like Samsung, Micron, and SK Hynix have already begun reducing their focus on these older memory types, with reports indicating they might cease production entirely.
Impending Exit from DDR3 and DDR4 Production by Major Manufacturers
Samsung made headlines last year when it discontinued DDR3 production due to a significant drop in demand. Meanwhile, the lifespan of DDR4, which has dominated the market since its 2014 introduction, is drawing to a close. Although DDR4 continues to account for a larger market share compared to DDR5, the supply is expected to diminish markedly as we approach the latter half of 2025. A report from DigiTimes highlights that dwindling profits and demand for DDR3 and DDR4 have led these major manufacturers to consider halting their production altogether.
Market Transition and Demand for Emerging Memory Technologies
The surge in demand for HBM and DDR5 memory is primarily driven by advancements in AI and cloud computing applications. As major companies prioritize the production of faster and more efficient DRAM chips, DDR3 and DDR4 memory types are likely to be left in the hands of smaller manufacturers.
Emerging Players in the DDR4 Market
Despite the anticipated drop in production from leading brands, demand for DDR3 and DDR4 memory remains relatively stable as a substantial number of users continue to utilize systems equipped with these memory types. Chinese manufacturers like CXMT are poised to capitalize on this situation by ramping up DDR4 production while also advancing into the DDR5 market.
Taiwan’s Response to Supply Constraints
Taiwanese companies, such as Nanya Technology and Winbond, are also expected to step in to meet the needs of the DDR3 and DDR4 markets. With manufacturing titans like Samsung, Micron, and SK Hynix likely halting production in the latter half of this year, initial supply constraints may arise. However, the shift toward more advanced memory solutions such as HBM underscores the industry’s evolving landscape.
News Source: DigiTimes
