DDR4 and DDR5 Memory Production Likely to Cease in 2023 as Major Manufacturers Shift Focus

Transitioning Memory Standards: The Shift from DDR4 and DDR3 to DDR5 and HBM

The memory market is undergoing a significant transformation, driven by the rising demand for High Bandwidth Memory (HBM) and DDR5 modules. Major DRAM manufacturers are preparing to phase out the production of older memory types, specifically DDR4 and DDR3. This pivot comes as industry players respond to shifting consumer needs and evolving technological landscapes.

Declining Popularity of DDR3 and DDR4

In 2022, Samsung made a notable move by halting the production of DDR3 memory due to a decline in demand. Other major manufacturers have followed suit, effectively reducing their output of DDR3 modules. DDR4, which was introduced to the market in 2014 and has since maintained a stronghold in consumer device markets, is now facing a similar fate with a projected discontinuation imminent by the end of 2025.

Emergence of DDR5 in the Consumer Market

DDR5 memory has gained traction in the mainstream consumer electronics space, exhibiting a robust performance despite DDR4 currently holding a larger market share. However, as manufacturers shift their production focus towards the more advanced DDR5 technology and HBM, the supply of DDR4 is expected to see a significant reduction, marking a turning point in the industry.

Market Implications for DDR3 and DDR4

Despite the shift in production focus, both DDR3 and DDR4 are likely to maintain a stable demand, largely because many users are still operating systems equipped with these memory types. This situation presents an opportunity for smaller players, particularly in China, like CXMT, which aims to bolster their global market share by continuing to produce DDR4 while also expanding their DDR5 capabilities.

Responses from Taiwanese Manufacturers

In Taiwan, companies such as Nanya Technology and Winbond are poised to address the impending supply gap in the DDR3 and DDR4 markets. These firms are also ramping up efforts to produce high-performance memory chips like HBM, driven by the increased demand from sectors such as artificial intelligence (AI) and cloud computing.

Conclusion

The transition towards next-generation memory technologies signifies not only a shift in manufacturing priorities but also highlights the evolving needs of consumers and industries alike. As the production of DDR4 and DDR3 wanes, the focus on DDR5 and HBM is expected to reshape the landscape of the memory market in the coming years.

News Source: DigiTimes

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