This is a real turning point in the DRAM chip industry, which could not only drive down the price of DDR5, but also increase that of DD4.
Just a few weeks ago, we announced Samsung's intention to stop producing DDR4 DRAM memory chips and focus instead on the more profitable DDR5. In fact, the South Korean company was not alone in its decision, as all three major DRAM manufacturers are now turning their backs on the old chips, abandoning DDR3 and DDR4 in quick succession. Samsung has announced this very clearly, very officially, but - a little more discreetly - the other South Korean, SK Hynix and the American firm Micron are doing the same.
As we said, the aim is to turn to the most profitable DDR5 chips. It has to be said that, even though it is still widely used throughout the world, DDR4 is losing ground. The most modern solutions rely instead on DDR5, or even HBM ( High Bandwidth Memory ). In this latter niche, Samsung is well behind SK Hynix, which has long been focusing on these highly sought-after chips for everything to do with artificial intelligence: it is estimated that SK Hynix holds 70% of this market!
Towards a revolution in DDR5 RAM? © Samsung
The three majors' lack of interest in DDR4 initially did the trick for Chinese companies (such as ChangXin Memory Technology - CXMT - or Fujian Jinhua), which are gaining ground in the DRAM sector, but were unable to catch up with DDR5. Were? Indeed, and this clearly comes as a surprise to many analysts: quoted by Tom's Hardware, the DigiTimes website reports that the Chinese government has put pressure on CXMT to abandon DDR4 altogether and switch to DDR5 very quickly. While DDR4 production at CXMT had reached record levels, the company is now suddenly forced to change gear.
Of course, this won't be good news for the three majors Micron, Samsung and SK Hynix, who will see a serious competitor come along to cut into their margins... Well, seriously, that remains to be seen, because while CXMT has demonstrated its ability to produce DDR4, the company seems to be having difficulties with DDR5 and, even more so, HBM. Indeed, DigiTimes reports that the company's first chips were unable to withstand temperatures in excess of 60°C, whereas Samsung's DDR5 chips, for example, can go up to 85°C - 25°C higher all the same. Let it be said, however, that China has no intention of abandoning its most lucrative DRAM chips.
