DRAM makers set to halt DDR3 and DDR4 production in 2025

DRAM makers plan to stop making DDR3 and DDR4 by 2025, shifting to DDR5 and HBM.

: Samsung Electronics, SK Hynix, and Micron, the major players in the DRAM industry, are focusing on DDR5 and HBM, planning to cease DDR3 and DDR4 production by 2025. This shift is expected to create a market gap, with Taiwanese manufacturers likely to step in and adjust pricing strategies. Nanya Technology highlights a projected DRAM market contraction in early 2025, but recovery is anticipated due to AI-driven demand. Winbond Electronics is advancing to a 16nm process for DDR chips as demand for high-performance memory grows.

The DRAM industry is reportedly set for a major transition, with Samsung Electronics, SK Hynix, and Micron gearing up to halt production of DDR3 and DDR4 memory by 2025, concentrating on DDR5 and high-bandwidth memory products instead. This strategic alignment is expected to affect end customers and device makers reliant on older memory solutions, potentially leading to supply shortages in late 2025 as Taiwanese manufacturers step in to fill the gap.

Nanya Technology, a key Taiwanese supplier, anticipates that pricing strategies will need adjustment amid evolving market dynamics, with the DRAM market forecasted to contract initially in 2025. However, demand driven by AI workloads and economic stimulus may spur a swift recovery, despite current declining prices for DDR3 and DDR4 and an upward trend for DDR5 and HBM products.

In response to the growing emphasis on high-performance memory, Winbond Electronics is planning a transition to a 16nm process for the production of 8Gb DDR chips in late 2025. This marks a shift from their existing 20nm process used for 4Gb chips in DDR3 and DDR4 solutions, reflecting industry efforts to enhance manufacturing capabilities to meet emerging demands.

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