DDR5 Memory Pricing Surged 20% Amid Production Cuts

DDR5 Memory Pricing Surged 20% Amid Production Cuts

MyDrivers reported (citing Taiwan Business Times) that due to memory chipmakers drastically reducing production of DRAM chips as a result of oversupply, DRAM pricing has begun to rise back up by as much as 20% for DDR5 modules in particular. As part of “inventory correction”, companies including Samsung, SK Hynix, and Micron have since further reduced production volumes, while Micron is expected to keep the production low until 2024.

The effect on pricing also involves DDR4 and DDR3 modules, which have seen price hikes of 10-15% and 10% respectively. It was significantly higher than initially predicted by market analyst firm TrendForce, which predicted 0-5% increase in pricing for DDR5 modules.

As memory chipmakers survived the long winter in prior quarters due to oversupply situation, things are looking good in the immediate future for these companies. As PC and server markets are still undergoing transition to DDR5 memory technologies, demand for these modules should keep the market flowing in good pace. However, it’s worth noting that while the DRAM modules themselves have become more expensive, it isn’t evident yet how this would affect the retail pricing of client RAM modules.

Source: Wccftech

Pokdepinion: It’s reasonable to expect the prices to stabilize for the entirety of 2024 as market corrections kick in.