Leading DRAM makers — Micron, Samsung, and SK hynix — may cease production of DDR3 and DDR4 memory by the end of the year. The decision is due to low prices caused by dumping (by Chinese makers) and declining demand, reports DigiTimes. This may potentially cause shortages of DDR4 memory that is still used in entry-level PCs and consumer electronics.
Chinese DRAM manufacturers Changxin Memory Technology (CXMT) and Fujian Jinhua have been ramping up production of DDR4 while aggressively lowering prices. Late last year their DDR4 chips were priced at half the cost of similar products from South Korean competitors. In some cases, Chinese DDR4 memory ICs were even 5% cheaper than refurbished chips. As a result, leading DRAM producers may no longer earn profit by selling DDR4, which is why they may have to phase out this type of memory while focusing on more profitable DDR5 (well, until Chinese companies start to produce it in volumes and dump on the global market) and HBM.
