The price of DDR5 will drop rapidly this year: Both Intel and AMD’s new platforms will benefit

by ddos ·

Over the past few months, the price of NAND flash memory has continued to fall under the shadow of rising inventory pressure and lukewarm market demand. TrendForce expects NAND flash prices to drop by 30% to 35% in the third quarter of 2023, if some NAND flash memory manufacturers do not reduce production, the market may continue to adjust.

The DRAM market is also experiencing similar problems, and it is inevitable that overall DRAM prices will fall, especially for DRAM products used in PCs and smartphones. According to DigiTimes, at present, DRAM chip suppliers have begun to reduce the price of entry-level DDR5 chips. The quotations of some channel distributors are even lower than the prices offered by memory module manufacturers. Selling DDR5 memory in the retail market can be said to be a loss-making business.

According to industry insiders, the contract price of DDR5 memory fell by about 20% in July, and it is expected that the price will drop rapidly in the second half of 2022. The price of DDR5 memory used to be three times that of DDR4 memory, but it has now been shrunk to twice the price. It should be known that the price of DDR4 memory is also falling during the same period, but the rate is not as obvious as that of DDR5 memory, about 10% to 15%.

This is bad news for the industry, but also good news. The drop in the price of DDR5 memory will increase the penetration rate of DDR5 memory, accelerate the speed of deployment, and be adopted by more terminal devices. Coinciding with AMD’s release of a new generation of AM5 platform, since it only supports DDR5 memory, a few months ago, many people were worried that the high memory price would affect consumers’ purchases. After all, Intel, whether Alder Lake or the upcoming Raptor Lake, can support both DDR4 and DDR5 memory, which has a cost advantage in this regard.

DDR5 memory prices are expected to reach a reasonable buying point by 2023.

Tags: DDR5DDR5 priceDDR5 price drop