Soaring Prices for Legacy DRAM: Surpassing $7 for the First Time in Seven Years

[Financial News] The price of generic Dynamic random-access memory (DRAM), specifically Double Data Rate 4 Synchronous Dynamic Random-Access Memory (DDR4), has risen for seven consecutive months.
According to DRAMeXchange, a market research firm, the average fixed transaction price for standard PC DRAM products (DDR4 8Gb 1Gx8) in October reached $7.00. This marks an 11.1% increase from the previous month’s $6.30. It is the first time since December 2018 that DDR4 fixed prices have surpassed $7, after nearly six years and ten months. Notably, for the first time since DRAMeXchange began tracking, generic DRAM prices have recorded double-digit monthly increases for seven consecutive months.
The upward trend in generic DRAM prices is due to memory manufacturers ramping up Double Data Rate 5 Synchronous Dynamic Random-Access Memory (DDR5) production while reducing DDR4 output. As a result, major Original Equipment Manufacturers (OEMs) are proactively stockpiling DDR4, intensifying the supply-demand imbalance.
TrendForce has revised its estimate for DRAM contract price increases in the fourth quarter of this year from the previous 18–23% to 25–30%. For 16Gb DDR5 Small Outline Dual In-line Memory Module (SO-DIMM) products, the average price in October was $59, up 25.5% from the prior month.
As the DRAM market rapidly shifts in favor of suppliers, memory prices are surging. TrendForce noted that SK hynix agreed with clients to raise supply prices by 20–25% compared to the previous quarter, while Samsung Electronics is seeking a 40% price hike in its quarterly contracts for November and December.
mkchang@fnnews.com Jang Min-kwon Reporter