December 25, 2025 /SemiMedia/ — Samsung Electronics has delayed plans to shut down its DDR4 memory production lines, reversing an earlier strategy announced in 2025 as rising prices have restored short-term profitability for legacy DRAM products.

Spot prices for 16GB DDR4 modules have climbed to around $60, an all-time high, according to industry sources. The pricing surge has made continued DDR4 output economically attractive, prompting Samsung to keep existing lines running, though the company has no plans to expand capacity or build new DDR4 production facilities.

In parallel, Samsung has secured supply agreements under non-cancellable, non-returnable (NCNR) contracts with at least one customer. Such agreements lock in fixed volumes and pricing over the contract period, obligating buyers to complete purchases regardless of future market fluctuations.

These contracts offer customers cost and supply stability at a time when memory markets are being reshaped by AI-related demand. For Samsung, NCNR agreements reduce exposure to cyclical risks, ensuring steady margins even if prices for high-bandwidth memory (HBM) or DDR5 weaken in the event of oversupply.

Sources said pricing under the NCNR contracts is expected to exceed $20 per 16GB DDR4 module, though still well below current spot market levels. Samsung continues to monitor market conditions and may seek higher prices in future negotiations.

So far, interest in long-term DDR4 contracts has come mainly from server and industrial customers, with consumer-focused companies largely absent. As a result, additional DDR4 output is likely to be absorbed by enterprise applications rather than easing shortages in the PC and DIY markets.

While major memory makers have slowed their exit from DDR4 manufacturing, industry observers do not expect meaningful relief for consumer memory supply constraints before 2026.