Major DRAM Makers to Discontinue DDR4 and DDR3 Production, Focus on HBM and DDR5
The DRAM market is undergoing a significant shift as Samsung, Micron, and SK Hynix—the three largest memory manufacturers—prepare to discontinue production of DDR4 and DDR3 memory modules. This development follows the steady decline in demand for these older technologies and a simultaneous rise in the profitability of HBM (High Bandwidth Memory) and DDR5 solutions.
According to a DigiTimes report, both DDR3 and DDR4 are expected to see production come to an end in the second half of 2025, though DDR4 is still used by many mainstream consumers and businesses. While DDR3, introduced over 18 years ago, has long been on its last legs—evidenced by Samsung ceasing its production last year—this move for DDR4 is more recent. Originally introduced in 2014, DDR4 dominated the mainstream computing market for nearly a decade. However, higher demand for DDR5 and HBM in both client and server environments has prompted memory giants to pivot resources to more advanced memory solutions.
Shifting Focus to DDR5 and HBM
The overall market for DDR5 has grown significantly since it first entered consumer electronics, and companies like Samsung, Micron, and SK Hynix have found higher margins in these newer technologies. Meanwhile, HBM is witnessing an explosion in demand fueled by AI and cloud computing, requiring faster and more sophisticated memory modules. With manufacturing lines already strained to meet these demands, many of the major memory players have opted to allocate more capacity to DDR5 and HBM at the expense of older DDR3 and DDR4 products.
Chinese and Taiwanese Firms Step In
Although major DRAM manufacturers are shifting their attention away from DDR3 and DDR4, the need for these modules remains sizable, as most existing systems still rely on them. Chinese memory producers, such as CXMT, see this as an opportunity to increase market share by expanding DDR4 production while simultaneously growing their DDR5 capabilities. Meanwhile, Taiwanese memory makers—including Nanya Technology and Winbond—are expected to step in and fill the gap for DDR3/DDR4 customers.
This transition might lead to supply constraints initially, particularly for older hardware platforms and budget-focused PCs that still make use of DDR3 or DDR4. As technology continues to evolve, consumers and businesses operating on legacy memory standards could encounter rising prices or reduced availability of modules.
Nevertheless, from the perspective of the “big three” (Samsung, Micron, SK Hynix), the decision is seen as strategic. Demand for high-performance memory—especially in AI, servers, cloud computing, and advanced desktop workstations—can only be addressed by more modern architectures like DDR5 and HBM, which deliver superior bandwidth and efficiency.
How do you think the phase-out of DDR3 and DDR4 will affect your next PC build or upgrade? Will you adopt DDR5 sooner, or is the change too rapid for your current setup? Share your thoughts and let us know!
