Two of the leading DRAM chip manufacturers are reportedly redirecting some of their lines to DDR5.
After months of low prices, DRAM chip inflation since September has been impressive. In the space of a few weeks, prices have more than doubled, and most industry specialists expect 2026 to be a year of inflation, with calm not returning until the end of 2027. This is due to the enormous needs of artificial intelligence facilities and the redeployment of major manufacturers' production units towards the more profitable HBM memory.
As we explained at the beginning of the month, while most consumers are feeling the pinch, manufacturers are quite content with the situation: margins on HBM are ensuring comfortable revenues, while widespread inflation is even boosting the profitability of DDR5, which until a few months ago was considered unattractive. As Samsung explains: " Rather than rapidly increasing our production capacity, we will focus on a strategy aimed at maintaining our long-term profitability. We will minimize the risk of overproduction through an investment strategy that balances customer demand and prices ".
Samsung and SK Hynix have no intention of significantly increasing production © Shutterstock
However, the situation could perhaps ease in the coming months. Oh, not early next year, but perhaps in the fourth quarter of 2026 or early 2027. Indeed, as DigiTimes explains, the tremendous inflation around DDR5 has made this memory much more profitable, and whereas there was talk of margins of 30% on HBM, current prices result in more or less 60% margin on DDR5. All the more reason for the major manufacturers to return to this field. Following SK Hynix's announcement to this effect, Samsung has now explained that it intends to redirect some of its lines towards DRAM chips for DDR5. Fingers crossed.
