The price soared Samsung continued to produce DDR4 until the end of 2026

Samsung has decided to extend the production period of DDR4 by one year. Photo/Associated Press

DRAM giant Samsung Electronics was scheduled to discontinue DDR4 production by the end of this year, but due to soaring DDR4 prices due to strong demand, Samsung decided to extend the production period of DDR4 by one year until the end of 2026.

Samsung previously informed customers that it would phase out production of 1z nanometer process DDR4 DRAM by the end of 2025, but Korean media “The Elec” quoted insiders as reporting that Samsung recently abandoned the plan and decided to continue producing DDR4 until December 2026. Samsung will notify customers of the changes in the plan in the near future.

One of the reasons why Samsung has extended the life of DDR4 products is that the company lags behind competitors SK hynix and Micron in high-bandwidth memory chips (HBM) in emerging fields, limiting HBM’s contribution to performance.

Samsung has decided to make good use of its existing production capacity and continue to leverage the value of DDR4 production lines. The 1z production line has been depreciated, so the cost is low, and continuing to produce DDR4 can greatly increase the profitability of the chip business.

The jump in DDR4 prices is another consideration for Samsung. As companies such as SK hynix and Micron gradually withdraw DDR4 and shift production capacity to HBM, which is widely used in AI applications, the price of DDR4 has skyrocketed due to reduced market supply. In addition, some device manufacturers are stockpiling DDR4 based on US tariff policies, which also supports prices.

According to the latest report from market research firm DRAMeXchange1, the average price of 8GB DDR4 for PCs reached $3.9 in July, a 50% increase from June, setting a record for four consecutive months of increase. From April to June, the price increases were above 20%, 22.22%, 27.27% and 23.81% respectively.

Analysts at data provider TrendForce pointed out that the world’s three major DRAM suppliers, Samsung, Hynix and Micron, are facing supply pressure because the industry prioritizes server DRAM demand rather than PC DRAM.

Entering the third quarter, the price of DDR4 is already about 4% higher than DDR5. According to TrendForce data, the price of an 8GB DDR4 module combination reached about $26.5 in July, up from $25.5 for DDR5 modules.

Samsung’s decision to extend the production period of DDR4 is expected to alleviate market shortages. Sources said that while DDR4 prices are unlikely to fall, price increases are expected to slow down. Furthermore, the continued production of DDR4 also indirectly proves that Samsung’s progress in expanding HBM production is not as smooth as expected.