Recently, the well-known research institution TrendForce released a report stating that since the second half of this year, the price of DDR4 memory has dropped by about 40%. It is predicted that by the end of this year and into next year, DDR4 prices will continue to plummet, exceeding expectations.
Not only DDR4, but DDR5 prices are also falling, dropping by about 15-20% in the second half of the year. The decline is smaller, but it is forecasted that prices will continue to drop in 2025.
Why such a sharp decline? The reason is that the current production capacity of DDR4 has far exceeded demand. Although DDR5 is in a slightly better situation, it is not much different, so manufacturers have no choice but to lower prices.
TrendForce pointed out that especially for DDR4, the price collapse is mainly due to Chinese mainland manufacturers continuously increasing production capacity and lowering costs, which has led to a global price collapse for DDR4. It is expected that some international manufacturers may gradually reduce DDR4 production capacity in the future, as they can no longer bear the inventory and cost pressures.
In response to this phenomenon, some netizens have commented that as long as China controls the technology, its products will be priced like cabbage.
Honestly, this statement is not an exaggeration—it is indeed true. For a so-called high-tech product, before Chinese companies master the technology, it is generally sold at a high premium. Additionally, since China is the largest consumer market in the world, many foreign companies bring such products to the Chinese market to profit.
This has been the case with LCD, OLED, color TVs, smartphones, PCs, chips, etc. Before China mastered the technology, foreign companies would come to the Chinese market to profit.
Then, as Chinese companies continuously break through and master the technology, backed by a complete industrial system, a mature labor market, and the hardworking spirit of the Chinese people, along with China’s massive market, almost all once high-priced high-tech products eventually become affordable.
Previously, memory products were considered high-tech, and companies like Samsung, Micron, and SK Hynix made huge profits in China, often citing events like factory fires or snowstorms causing production stoppages to justify price increases.
Now, China has several major memory chip bases that can produce DDR4, DDR5 memory and even NAND flash memory, so these products no longer carry high premiums. Gradually, they are really becoming affordable.
In the future, it is expected that more and more similar products, as Chinese companies continue to break through and rise, will go from once being high-end to becoming accessible, don’t you think?
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