DDR4 Memory Faces Shortages and Soaring Prices, DDR5 Adoption Accelerates Benefiting Domestic Manufacturers

Market Conditions & Causes:

Shenzhen's Huaqiangbei market reports widespread "out-of-stock" situations for various DDR4 memory modules, accompanied by significant recent price surges (e.g., over 20% weekly increase for some models, over 30% on e-commerce platforms, and chips spiking over 50% in half a month). This volatility primarily stems from supply contraction: Leading global memory manufacturers (Samsung, Micron, SK Hynix, etc.) have signaled reduced or discontinued DDR4 production. Coupled with lagging market adoption of DDR5, this has created localized supply-demand imbalances. Solid-state drive (SSD) prices also show upward momentum.

DDR4 Phase-out & DDR5 Rise:

Despite entering its obsolescence phase, DDR4 maintains stable demand in niche markets like industrial, security, and television applications. Industry experts estimate a 3-5 year timeline for its complete phase-out. Concurrently, DDR5 adoption is accelerating rapidly, driven by AI trends and OEM capacity shifts. Domestic manufacturers are actively capitalizing on this shift: Montage Technology reports surging DDR5 memory interface chip shipments and orders (over RMB 1.29 billion expected for Q2 delivery), fueling strong financial growth; Giantec Semiconductor sees substantial sales growth for DDR5-supporting SPD products; Module makers like BIWIN and Longsys are accelerating mass production of high-end DDR5/LPDDR5X solutions for AI PCs/phones and enterprise needs.

Industry Outlook:

The memory sector is undergoing a critical DDR4-to-DDR5 generational transition. OEM DDR4 production cuts trigger shortages and price hikes, though niche demand delays its exit. DDR5 proliferation accelerates under AI momentum, with domestic memory chip and module manufacturers like Montage Technology seizing the opportunity, demonstrating significant operational and strategic gains.