DRAM Market in Chaos: Why Is Older DDR4 Memory Now More Expensive Than DDR5?

As 2025 enters its final stages, the DRAM (Dynamic Random-Access Memory) market is sending a complex mix of signals. According to a report by Digitimes, after a price frenzy in the second quarter, DDR4 spot prices have stabilized. However, due to tight supply, their contract prices continue to climb. This market trend presents a difficult challenge for PC builders: older DDR4 memory kits are now priced higher than the newer, faster DDR5 alternatives.

Industry data from the DRAM spot market compiled by Digitimes shows that in August, the price of DDR4 16GB (2Gx8) products increased by nearly 7% month-over-month to $9.17 per chip, following a slowdown in July. In stark contrast, the price of DDR5 16GB (2Gx8) products fell by 3% to $5.99, widening the price gap between the two generations to almost 50%. Meanwhile, the price of DDR4 8GB (1Gx8) continued its downward trend, while older DDR3 512MBx8 products saw another significant price surge, climbing 13% in August after a 20% jump in July. This is largely due to Samsung ceasing DDR3 production in 2024 and limited capacity from Taiwanese manufacturers, fueling panic buying.

Older Hardware Encounters an "AI Tax"

On the surface, this appears to be a simple supply shortage. However, a deeper analysis reveals that leading memory manufacturers like Samsung, SK Hynix, and Micron are gradually scaling back DDR4 production. They are reallocating their production lines to manufacture DDR5 and High-Bandwidth Memory (HBM), both of which serve the rapidly growing AI accelerator market. This strategic shift is forcing DDR4 users to pay for an artificially created scarcity. The price increase for DDR4 is more a result of this deliberate supply squeeze than a sudden surge in demand.

The major foundries are shifting their focus to HBM, which offers much higher profit margins as it is used in GPUs and AI inference applications. Every wafer dedicated to producing an NVIDIA H100 or AMD Instinct accelerator takes capacity away from DDR4. This intentional reallocation of production tightens the DDR4 supply, compelling system builders and distributors to hoard the remaining inventory, which further inflates prices. Ultimately, this has led to a market inversion where DDR4, despite being older and slower technology, is now more expensive than DDR5. In effect, mainstream PC builders are paying an "AI tax" as memory manufacturers extract maximum profit from the older technology before discontinuing it entirely.

Contract Prices Will Continue to Rise

Despite the spot market showing signs of fatigue, analysts predict that DDR4 contract prices will maintain their upward trend through the end of the year. The Digitimes report also notes that Adata Technology forecasts a rebound in DDR4 demand in September once current inventories are depleted. Simultaneously, NAND flash prices are expected to remain stable due to cautious production expansion by manufacturers.

This means that buyers of DDR4 are unlikely to see price relief in the short term. The limited wafer capacity allocated to DDR4 will support high contract prices into the fourth quarter. For users still on older platforms like AMD's AM4 or Intel's 12th/13th Gen, now might be the opportune moment to purchase DDR4 if a capacity upgrade is urgently needed. For those building new systems, however, DDR5 offers superior value and is poised to become the sole mainstream memory platform in the future.

Torna al blog

Related Posts

  • _{region} ( _{language} )

    • _{area}

    _{region}
    _{language}