TECH NEWS – It’s no coincidence that we wrote earlier about the need to upgrade/expand your SSDs and memory as soon as possible…
Industry sources are telling us that memory manufacturers are producing less, and this is starting to trickle down to the market: with less supply, demand is balanced by higher prices, so DDR5 RAM will soon be much more expensive in the shops, as the state of the DRAM market depends on manufacturers and consumers finding a way out together. The fact is that there has been overproduction, so there are piles of inventory, and consumer interest is way below that. (This is why SSDs and RAM have become very cheap).
That is why the leading companies in the industry (Samsung, Micron and SK Hynix) have decided to “drastically” cut production to balance the market situation, which could lead to a correction in inventories. MyDrivers, citing the Taiwan Business Times, says that DDR5 memory prices have increased by 15-20%, DDR4 by 10-15% and DDR3 by 10%, which was higher than expected, but that the consumer market will also feel the change as retailers will not swallow the loss either.
The memory market is in a transition phase as far as users are concerned, with DDR5 slowly replacing DDR4. The server market is also in high demand due to the expansion of artificial intelligence. With DDR5 and LPDDR5 also slowly becoming mainstream, the next few quarters could see a positive balance between revenue and supply/demand. And so we should be prepared for memory to become a bit more expensive now (used ECC memory, albeit slower, from disassembled servers can be had for pennies on the dollar/gigabyte).
So when 2024 rolls around, don’t be surprised if, on top of the usual more expensive price increases, we have to dig deeper into our wallets if we want to switch to DDR5.