Samsung will adjust memory production: increasing DDR5, decreasing DDR4 prices, phasing out DDR3
At present, the industry is transitioning from DDR4 memory to DDR5 memory. AMD is about to release Ryzen 7000 series processors and AM5 platforms, and Intel will also replace Alder Lake with Raptor Lake, which is believed to speed up this process.
According to Wccftech, Samsung plans to make adjustments to its memory production. First, it will begin to gradually reduce the production quantity of DDR3 memory, while reducing the inventory level of DDR3 memory. Secondly, the pricing strategy of DDR4 memory will be changed, and the price of DDR4 memory will be lowered to make it more cost-effective, although, from the perspective of manufacturing cost, the decline and speed are somewhat “unreasonable”. In the end, it will increase the production of DDR5 memory and increase the inventory. Samsung hopes that the industry will change its view of DDR5 memory and make it faster to become the standard of systems and devices.
This is not the first time Samsung has implemented such a more aggressive pricing strategy. As the largest supplier of memory chips in the market, its strategy will directly affect the supply and price of the memory market. Generally speaking, this approach is intended to allow the market to adopt the new memory faster and be more profitable in terms of revenue.
In addition to Samsung, another major manufacturer, SK Hynix, is also reducing the inventory of DDR3 memory, increasing the production of DDR5 memory in the process. However, some people in the industry worry that under the current strategy and consumption environment, the growth of the entire DRAM market will become more limited. In addition, due to the high cost of input, each memory manufacturer is currently slow to upgrade in terms of technology.
