Samsung plans to increase DDR5 memory production

Over the past year, the DRAM market has experienced an unfavorable trajectory, with market demand remaining tepid, particularly as we ventured into 2023. This has inevitably decelerated the transition from DDR4 to DDR5 memory. Preceding this, behemoths such as Samsung, SK Hynix, and Micron opted for substantial production cuts, predominantly in the DDR4 domain, whilst shifting their focus more intently towards DDR5 and HBM-class products.

According to a report by Wccftech, Samsung has resolved to amplify the production of power management ICs tailored for DDR5 to brace for impending market demands. Samsung stands as one of the elite few manufacturers engaged in the production of these power management ICs. Market appetite for DDR5 is anticipated to ascend to new pinnacles in the forthcoming months, thereby necessitating a commensurate uptick in DDR5 memory production. Intel’s forthcoming Arrow Lake, in divergence from its predecessors Alder Lake and Raptor Lake, will eschew support for DDR4 memory entirely. AMD, with a more audacious approach, ceased DDR5 memory support starting from their Ryzen 7000 series last year, and the sales proportions of their new platforms have been on a continual rise.

In contrast to the consumer market, Intel’s Sapphire Rapids, and the subsequent Emerald Rapids, will exclusively cater to DDR5 memory, propelling its rapid adoption in the server domain. From a cost perspective, as the industry gravitates towards DDR5 memory, costs have been steadily declining, narrowing the gap with DDR4 memory. This, in turn, has catalyzed the proliferation of DDR5 memory in the consumer sphere.

This year, Samsung’s revenue performance has been less than stellar, with the erstwhile pillar of its storage division underperforming as a primary culprit. However, with the DRAM market displaying signs of rejuvenation, a glimmer of hope seems to be on the horizon for Samsung.