The price of DDR4 RAM could go up a lot this year with the arrival of the DDR5 memory. It is not the only RAM standard that could go up this year, with a sharp rise in DDR3 memory expected. According to various information, DDR3 memory could increase in price between 40% and 50% in 2021. An increase that would have to do with the almost total cessation of production.
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DDR3 could rise up to 50% in 2021 due to DDR5 RAM
Intel is expected to launch Alder Lake-S processors that support DDR5 by the end of the year. They will not be the only ones, since AMD's Ryzen 6000 would also support this standard. Manufacturers will choose to make DDR4 and DDR5, ditching DDR3 memory. Said decrease in production will mean an increase in the price of these memories.
At the end of 2020, the first signs of a price increase have been detected, which will continue this year. All RAM manufacturers are focusing on the production of DDR5 memory.
We must not ignore that the demand for DDR3 RAM remains remarkable. The DDR4 standard has been on the market for many years, but there are still systems that use the DDR3 standard. Many users purchase Intel Xeon processor, motherboard, and DDR3 RAM memory combos to mount their gaming systems. Without going any further we have several servers that use DDR3.
According to the data, the price increases would be like this:
- Increase of 20% during Q1 2021
- Increase of up to 50% the rest of 2021
And it is that maintaining the production of DDR3 in parallel with the production of DDR4 and DDR5 is not viable. Although DDR3 production was already low, it will suffer a significant cut.
To give us an idea, SK Hynix only produces 3GB DDR4 modules. Samsung has already gone from producing 60.000 chips per month to producing 20.000 chips per month (reduction of more than 60%). The positive part is that Taiwanese manufacturers such as Nanya and PSMC will continue to produce them. This will promote price containment.
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[irp]Source: WTN