Memory prices have gone up sharply in the last few quarters, and it now appears the situation isn’t going to get better anytime soon, at least for the next two years. DDR5 is already facing price surges, and the latest supply chain reports suggest a significant price increase would affect older DDR4 and DDR3 modules, which far exceeds initial expectations.
According to a DigiTimes report, memory contract prices are still being finalized, and that’s only going to worsen the situation. Citing supply chain sources, the report reveals that the older DDR4 memory is expected to see a price increase of over 50% in Q3 2026. The report specifically targets DDR4 8Gb DRAM modules.
Earlier, some industry analysts predicted that the rate at which memory prices were rising could narrow to 10–20%, but the reality is just the opposite. Based on the current scenarios, it doesn’t look like it’s going to get better soon.
The spot prices for DDR4 16Gb memory are already high, and in some cases, they are more expensive than DDR5 memory with the same specifications. Their main application largely revolves around PCs. The demand for DDR4 memory rose significantly in Q2, leading to an unexpected price increase. The report also mentions that Taiwanese-made DDR4 memory is priced much higher than Samsung’s offering. The South Korean giant has shifted its production capacity to focus on DDR5 and next-gen premium memory to capture a larger share of revenue from AI customers.
Contract prices for DDR4 8Gb continued their strong upward trend in the third quarter. Due to severe capacity shortages, some industry players reportedly received information from Taiwanese memory manufacturers that DDR4 8Gb prices would increase by 50% in the third quarter compared to the second quarter, breaking through the previously expected price ceiling.
via DigiTimes
Enterprise-grade SSDs, equipped with DRAM, are also contributing to a surge in DDR4 demand. Having DRAM offers various benefits, including lower latency and higher speeds through caching. With large data centers moving towards high-capacity, enterprise-grade SSDs, the need for DRAM will continue to rise.
The three major companies, Samsung, Micron, and SK Hynix, have largely moved away from DDR4 production. Samsung produces in smaller volumes for a few long-term customers, while Micron recently announced mass production of DDR4 and LPDDR4 using the 1α process at its Manassas plant in Virginia, USA. The Taiwan-based Nanya Technology and Winbond Electronics handle the majority of DDR production, which is far below the actual global demand.
The crisis that originally began in the DDR5 segment has trickled down to the legacy DDR3 networks. Prices of 4Gb DDR4 and DDR3 are expected to surge through the second half of 2026. Based on spot prices in early July, here’s the average price of DDR3 and DDR5:
Average price (July 2026)
- DDR4 4Gb (512MB x 8) — $12.75
- DDR5 16Gb (2GB x 8) — $47.07
Price per Gb
- DDR3 4Gb — $3.19
- DDR5 16Gb — $2.94
As the production capacity of every major company has already been utilized, the supply-demand gap will continue to rise. According to some industry experts, the DRAM prices for DDR5, DDR4, and DDR3 will continue to surge at least until 2028. That also means we’re likely to see more price hikes in the near future.
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