DDR2 contract prices rose 55% to 60% in the second quarter of the year and are projected to climb another 35% to 40% in the third, according to research published this week by TrendForce, pushing the AI-driven memory shortage onto a standard that first shipped in 2003 and that the three largest DRAM makers stopped prioritizing years ago. The increases come from buyers redesigning products around older memory to secure supply, and from a split among the handful of remaining DDR2 suppliers, with Winbond reducing output as ESMT expands it.
The shortage hasn’t hit DDR2 directly, but Samsung, SK hynix, and Micron have steered wafer capacity toward HBM and server DRAM to feed AI infrastructure spending, thinning the supply of mature-node parts, including DDR4. As DDR4 tightened, OEMs and ODMs began specifying DDR3 in its place, and some DDR3 designs were reworked to use DDR2, with each tier of buyers chasing whatever generation it could still source. The result of this is shortages moving down through successive generations, something we saw unfolding back in March, when earlier data showed DDR3 and DDR2 prices rising 20% to 40% in a single month.
