If you’re planning to buy DDR3, and most of all DDR4, memory kits, you’d better do it soon. The main RAM producers, Samsung, Sk Hynix and Micron, could well be stopping production. The reason for this? Too much competition from China, as these chips are no longer profitable for them!
The end of DDR4 and DDR3 for Samsung, Micron and SK Hynix?
For some time now, Chinese manufacturers have been flooding the market with their cheap memory chips. In fact, they are so affordable that they sell for up to 5% less than reconditioned chips. However, this very strong pressure on prices means that producing DDR3 and DDR4 is no longer profitable enough for Western manufacturers such as Samsung, Micron and SK Hynix. Rumour has it that their production could cease by the end of the year.
Unfortunately, this cessation of production could well mean skyrocketing prices. Despite very affordable Chinese production, the cessation of production by these giants means that supply will be that much lower. Despite this, DDR4 is still in demand, particularly from consumers looking to upgrade their PCs or build low-cost machines. The problem is that Chinese producers such as Changxin Memory Technology and Fujian Jinhua may not be able to meet demand on their own.
Tom’s Hardware points out that Taiwanese companies could also step into the breach. However, as their products are specialised, they are not ‘ cheap’ and production volumes are rather low. Clearly, we can expect things to stall by the middle of the year. At the moment, the market is at a low point, but could pick up again in the second quarter as demand rises.
As for Samsung, Sk Hynix and Micron, they will be focusing on the more profitable DDR5.
