Samsung and SK Hynix have extended DDR4 production through 2026 as AI-driven demand, wafer reallocation to High Bandwidth Memory (HBM), and constrained legacy capacity push DDR4 prices higher. Despite increasing DDR5 adoption, reduced DDR4 output has created a global supply shortage, driving price volatility and forcing manufacturers to revise previously planned phase-out timelines. Most extended DDR4 production is allocated to enterprise and contract customers, meaning consumer and OEM markets are unlikely to see meaningful supply relief before 2026.

The Current Memory Market

The global memory market is undergoing significant disruption as AI-driven demand reshapes DRAM and memory supply priorities. Leading DRAM manufacturers have reduced legacy output while reallocating wafer capacity toward High Bandwidth Memory (HBM) and advanced process nodes. This shift has limited overall production flexibility across the memory ecosystem.

Learn More: The Global Memory Chip Shortage – DRAM, DDR4, NAND Flash and HBM Memory

At the same time, sustained demand from AI data centers, cloud infrastructure, industrial systems, and telecommunications has intensified competition for available memory supply. This imbalance has driven pricing volatility across both legacy and next-generation DRAM products.

DDR4 in Today’s Memory Landscape

Although DDR5 is positioned as the long-term mainstream DRAM standard, DDR4 remains critical across server, industrial, telecom, and embedded applications due to its proven stability and widespread platform compatibility. Many existing systems continue to rely on DDR4 because migrating to DDR5 requires system redesigns, requalification, and higher validation costs.

With earlier capacity reductions and ongoing wafer reallocation toward HBM, DDR4 supply has tightened significantly, pushing prices sharply higher and, in some cases, above DDR5 pricing. As a result, DDR4 has shifted from a mature commodity to a strategically constrained memory component.

Learn More: DDR4 and DDR5 Prices Surge 

Why DDR4 Production Was Supposed to End

DDR4 memory, first introduced in 2014, has been in mass production for more than a decade. Under normal market conditions, DDR5 would gradually replace DDR4 as the mainstream DRAM standard, allowing manufacturers to phase out older process nodes.

However, the global memory market has deviated sharply from this traditional cycle. Reduced DDR4 capacity, combined with wafer reallocation toward AI-focused memory products, has disrupted supply and altered pricing dynamics across all DRAM segments.

Samsung Extends DDR4 Production as Prices Surge and Supply Tightens

Samsung Electronics initially planned to wind down its DDR4 production lines to prioritize DDR5 and High Bandwidth Memory (HBM). However, DDR4 spot market pricing began to rise sharply in 2024, signaling a severe supply–demand imbalance.

By mid-2024, 16GB DDR4 modules reached spot prices of up to $60, in some cases exceeding DDR5 pricing. This DDR4–DDR5 price inversion was driven by reduced DDR4 output, panic buying, and ongoing reliance on DDR4 across server, industrial, and infrastructure applications.

In response, Samsung extended its existing DDR4 production lines through December 2026, while confirming it will not establish new lines to accommodate consumer demand.

Samsung has also reportedly signed a non-cancellable, non-returnable (NCNR) contract that locks in fixed volumes and pricing. This agreement provides predictable pricing and supply stability, insulating customers from the pricing volatility currently affecting the memory market amid rapid AI-driven demand.

SK Hynix Adjusts DDR4 Roadmap to Support Industrial and Server Demand

SK Hynix, another dominant global DRAM manufacturer, has taken a similar approach by extending its DDR4 product lifecycle through 2026. Despite DDR5 gaining market share, SK Hynix acknowledges that DDR4 remains essential for applications requiring long-term stability and platform compatibility.

To support ongoing demand, SK Hynix has expanded DDR4-related capacity at its Wuxi wafer fabrication facility, while balancing production across DDR4, DDR5, and HBM. Like Samsung, SK Hynix faces structural constraints due to the high wafer intensity of HBM production.

As a result, DDR4 supply remains limited, supporting higher prices and reinforcing the need for strategic memory sourcing.

How AI and HBM Are Reshaping the Global DRAM Market

The rapid expansion of AI infrastructure has fundamentally altered DRAM manufacturing priorities. High Bandwidth Memory (HBM), a critical component for AI accelerators, requires significantly more wafer resources than standard DRAM.

As manufacturers scale HBM output, capacity for both DDR4 and DDR5 becomes constrained. This shift has created ripple effects across the memory market, driving prices higher and limiting the availability of legacy products.

The AI boom has effectively tightened all DRAM supply, not just next-generation memory.

Why DDR4 Shortages Will Continue Through 2026

Although Samsung and SK Hynix have extended DDR4 production, most output is allocated to:

·      NCNR contract customers

·      Server and data center deployments

·      Industrial and telecommunications infrastructure

Few consumer-focused companies have secured long-term DDR4 supply agreements. DDR4 shortages and elevated pricing are expected through 2026.

Learn More: Memory Sourcing Strategies for a Shortage-Driven Market

What to Know About DDR4 vs DDR5

The current memory market challenges traditional assumptions about legacy DRAM. DDR4 is no longer a low-risk, commodity component.

Key Considerations:

·      Ongoing DDR4 supply constraints

·      Price volatility driven by AI demand

·      Limited spot market availability

·      Validation costs associated with DDR5 migration

Strategic sourcing and lifecycle planning are now essential.

How to Navigate the Memory Market 

At Microchip USA, we help customers navigate volatile memory cycles by providing access to a broad portfolio of verified memory components.

We specialize in sourcing and supplying memory from leading manufacturers such as Samsung, SK Hynix, and Micron, including:

·      DDR3 RAM, DDR4 SDRAM, and DDR5 RAM

·      High Bandwidth Memory (HBM)

·      Flash Memory

·      SRAM, EEPROM, EPROM

·      MRAM, FRAM, NVRAM

·      ROM and PROM

Learn More: Find Memory

We offer RoHS-compliant and non-RoHS options, flexible sourcing strategies, and global distribution to support industrial, consumer, server, and embedded applications.

Contact Microchip USA to secure memory supply and reduce risk in an increasingly constrained DRAM market.

DDR4’s Second Life Is Real, but Supply Remains Limited

Samsung and SK Hynix’s decisions to extend DDR4 production confirm that legacy memory continues to play a critical role in modern computing. However, extended lifecycles do not equate to an abundant supply.

With AI-driven demand reshaping DRAM priorities and most DDR4 output reserved for enterprise customers, proactive sourcing and experienced distribution partners will remain essential through 2026 and beyond.