Core Viewpoint - DDR4 memory prices have surged significantly, with a reported increase of approximately 50% in the second half of May alone, driven by various supply-side factors and market dynamics [1][2][3]. Price Trends - DDR4 8GB chips rose from $1.75 to $2.73, marking a 56% increase, while 16GB chips increased from $3.58 to $5.20, a 45% rise [2]. - Contract prices for 8GB and 16GB chips have increased by 22% to 25% compared to early May [1][2]. - DDR4 prices are expected to continue rising by 10% to 20% in the third quarter [1]. Supply Dynamics - Major manufacturers are shifting focus from DDR4 to more profitable products like DDR5, leading to reduced production of DDR4 [2]. - Reports indicate that companies like Micron, Samsung, and SK Hynix are being pushed out of the DDR4 market by aggressive pricing from Chinese manufacturers [2]. - Longsys has received directives to halt DDR4 production, indicating a shift in supply dynamics [2]. Market Influences - The increase in DDR4 prices is not solely attributed to supply reduction; geopolitical tensions, particularly between the US and China, have also contributed to price pressures [3]. - Stockpiling behavior due to US tariffs has been noted as a factor leading to price hikes in late May [3]. Future Outlook - Despite the rising prices, industry insiders believe that the profitability window for DDR4 is closing rapidly as major manufacturers exit the market [3]. - Smaller suppliers may still find opportunities in niche markets, such as industrial and embedded platforms that continue to use DDR4, with deployments expected to last until at least 2026 [3].