SEOUL, June 19 (AJP) - In a rare twist in the global semiconductor market, older-generation DDR4 memory chips are now trading at higher prices than more advanced DDR5s, signaling a short-term disruption in traditional pricing dynamics.
According to DRAMeXchange, a market research firm tracking semiconductor prices, 16-gigabit DDR4 chips traded at an average of $7.00 each on Tuesday, surpassing DDR5 chips of the same capacity, which averaged $5.90.
The reversal — first observed on June 9 — stands in stark contrast to the pricing structure seen just months earlier, when DDR5 commanded premiums of 56.6 percent in December and 65.4 percent in March.
This pricing anomaly is being driven largely by looming supply shortages.
Major memory manufacturers including Samsung Electronics and SK hynix have informed customers of their intention to halt DDR4 production by the end of the year, shifting focus to DDR5.
U.S.-based Micron Technology followed suit last week, and China’s ChangXin Memory Technologies, once expected to remain a holdout, is now accelerating its own transition to DDR5.
Compounding the supply pressures are geopolitical concerns. With growing uncertainty over potential export tariffs on semiconductor products, some companies are stockpiling DDR4 chips, further tightening supply and driving prices higher. Over the past six months, the average price of DDR4 16Gb chips has surged 120.2 percent, compared with a 24.2 percent increase for DDR5 chips during the same period.
DDR4, first introduced in 2014, is a mature technology gradually being phased out, while DDR5 — launched into mass production in 2020 — offers higher bandwidth and energy efficiency. Analysts say the current market inversion is unlikely to last.
reporter
Candice Kim
candicekim1121@ajupress.com
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