July 7, 2025 /SemiMedia/ — Prices of DDR4 memory chips have soared over the past two months as major DRAM manufacturers, including Micron, Samsung, and SK Hynix, begin winding down production of legacy DDR4 products. Chinese memory makers have followed suit since May, leading to a sharp supply shortage and a price increase that has now pushed DDR4 costs above those of DDR5.

According to ComputerBase, the price of an 8GB DDR4-3200 chip has risen from $1.75 in late April to over $5. Dual-module kits now average $8.80, more than double their earlier price. The surge has prompted several smaller players to re-enter the market, seeking short-term profit opportunities.

Nanya Technology, which maintains a strong DDR4 product lineup and limited DDR5 capability, has seen direct benefits from the price rally. In contrast, major players such as Micron are unlikely to resume DDR4 output, having already redirected production capacity to higher-margin products like DDR5 and high-bandwidth memory (HBM) to support AI workloads.

Although some modules have seen a slight price correction, the overall market remains tight. Many buyers are stockpiling DDR4 chips to hedge against further disruptions. Analysts expect that as smaller suppliers ramp up output, prices will gradually stabilize, though a return to previous levels may take time.

DDR5, first introduced by JEDEC in 2020, is already supported by Intel’s latest CPUs and AMD’s Zen 4 series. Meanwhile, demand for HBM has accelerated rapidly alongside the growth of AI, encouraging manufacturers to fully transition away from DDR4. Nevertheless, older platforms still depend on DDR4, meaning its phase-out will likely continue at a slow but steady pace.