DDR4 Memory Prices Keep On Rising
Production issues and high demand make the prices for DDR4 memory even more expensive, and will continue to rise up-to 12.5% in the near future.
“PC-OEMs that have been negotiating their second-quarter memory contracts initially expected the market supply to expand because Samsung and Micron have begun to produce on the 18nm and the 17nm processes, respectively,” said Avril Wu, research director of DRAMeXchange. “However, both Samsung and Micron have encountered setbacks related to sampling and yield, so the supply situation remains tight going into the second quarter and PC DRAM prices will continue to rise through this three-month period.”
Example price development 12 months of a Kingston HyperX Fury Black 16GB DDR4 kit
There is no relief to the short supply problem as Samsung and Micron encounter roadblocks in their respective migrations to under-20nm production. Samsung has started to mass produce 18nm PC DRAM products since the middle of this year’s first quarter. Transitioning to a higher level of manufacturing technology tends to create difficult design challenges, and Samsung has found that some of its memory modules are having compatibility issues with certain notebook platforms. The high defect rate from the 18nm process has hindered the supplier’s shipments. As Samsung is attempting to resolve the product quality problem, its contribution to the market supply will be severely limited.
Micron has also started sending its 17nm PC DRAM products to clients for sampling since the first quarter, but the entire process is taking much longer time than expected. Micron is likely going to delay mass production for its 17nm process beyond this second quarter.
Among the big three suppliers, SK Hynix is only one that is not transitioning to a more advanced manufacturing technology for its PC DRAM and is not shown to have problems in delivering its products. Wu pointed out that Samsung’s and Micron’s predicaments reveal that design and manufacturing barriers become a lot higher when it comes to migrating to under-20nm production. At the same time, such migration efforts result in diminishing returns in the form of shrinking bit growth. Significant improvement in the market supply situation therefore is expected to come much later.
Wu added that the DRAM market as a whole will continue to see prices climbing during the entire second quarter: “Besides the larger price hike for PC DRAM products, prices of server DRAM products for the second quarter are projected to rise by 10~15% sequentially on average. Compared with PC DRAM and server DRAM products, mobile memory products will have the smallest price increase during this three-month period, estimated at under 5% from the preceding quarter. The moderate price uptick for mobile memory products is mainly attributed to slowing shipments from China-based smartphone makers. On the other hand, prices of eMCP products are expected to go up by around 5% versus the first quarter due to the additional factor of NAND Flash shortage.”
Via iconnect
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Senior Member
Posts: 5741
Joined: 2012-11-10
At first I was like "I don't think DDR4 prices changed that much..." and then I realized I couldn't have been more wrong. I bought 16GB of DDR4 at 3GHz with a CL of 15 back in November for about $80 USD. The same product at the same store is now $123. Yikes, I sure dodged a bullet there. $43 is often enough to increase the performance tier of another product.
Senior Member
Posts: 276
Joined: 2015-11-18
Fabricated excuses and cartels under the table to increase the profit margins.
Create a technical excuse so the public won't object and start the milking.
Just like with the HDDs and Monitors some years ago.
Senior Member
Posts: 1433
Joined: 2013-06-04
Why change the process to one that produces worst results wile you can't even keep up with demand of the current process? What the hell...
Senior Member
Posts: 5741
Joined: 2012-11-10
Well I don't think they intentionally went to 18nm expecting it to yield worse results. I'm guessing they upgraded their factories, rather than build an additional one, in which case they can't go back. So, they're stuck with production being worse for the time being.
Senior Member
Posts: 3706
Joined: 2011-11-10
It's like oil. Use any excuse to raises prices.