Semiconductor Giants Cut Production, DDR4 Faces Decline

Semiconductor giants reduce production, signaling the potential end of DDR4 as newer technologies take over the market.
Semiconductor Giants Cut Production, DDR4 Faces Decline

Table of Contents

As an important hardware component in computer systems, memory is used for temporarily storing data and instructions, directly connected to the CPU, and serves as a bridge for data exchange between the CPU and memory. The speed and capacity of memory have a direct impact on the overall performance of the computer.

As a crucial part of computer systems, memory plays a vital role in data storage and rapid reading. From the earliest DRAM to the current DDR4 and the upcoming DDR5, memory technology has been continuously evolving, with each technological innovation bringing improvements in performance and expanding its application range. Since the launch of DDR (Double Data Rate) memory in 2000, it has become mainstream due to its advantage of double data transfer rate. Throughout the long history of technological iterations, DDR memory has gained widespread use because of its efficient data transfer rate and good performance.

According to a recent survey, despite the continuous development of DDR5 memory technology, DDR4 still occupies a dominant position in the market. In an overseas voting survey, the results showed that 58.2% of users were using DDR4, while only 32.5% were using DDR5. This result reflects the current state of the DDR memory market: DDR4 is still mainstream, and the market penetration of DDR5 is not as high as expected, leaving room for growth.

However, recently, SK Hynix plans to gradually reduce its production share of DDR4. Leading memory manufacturers seem to be gradually abandoning DDR4 technology and product lines in favor of more advanced and higher-profit DDR5. DDR4 may eventually phase out.

From DDR1 to DDR6

DDR memory, short for DDR SDRAM (Double Data Rate SDRAM), was first proposed by Samsung in 1996, and its memory specification was agreed upon by eight companies, including Japan’s NEC, Mitsubishi, Fujitsu, Toshiba, Hitachi, Texas Instruments, Samsung, and Hyundai, with support from major chipset manufacturers like AMD, VIA, and SiS.

In the early 21st century, as personal computer performance continued to improve, the demand for memory bandwidth also increased. The original SDRAM (Synchronous Dynamic Random Access Memory) could no longer meet the new performance needs, necessitating the development of new memory technologies to overcome bandwidth bottlenecks. Against this backdrop, DDR1 was born, achieving a leap in memory performance by changing the way data is transferred.

DDR1 used double data rate technology, theoretically doubling the data transfer rate compared to SDRAM at the same clock frequency. In addition, DDR1 introduced a multi-bank structure design, increased the data prefetch width, and optimized the chip’s interface circuits, significantly improving memory data throughput.

DDR2, the second-generation version of DDR technology, was introduced in 2003. A key innovation in DDR2 was the introduction of a new voltage specification of 1.8V, which, compared to DDR1’s 2.5V, significantly reduced the power consumption of memory modules. Reducing voltage not only helped reduce heat but also improved the stability and reliability of memory modules. Although DDR2 still used the basic method of data transmission on both the rising and falling edges of the clock, it had more than double the prefetch ability of the previous generation DDR memory (i.e., 4-bit data prefetch). In other words, DDR2 memory could read/write data at four times the external bus speed per clock cycle and operate at four times the speed of the internal control bus.

In 2007, DDR3 memory was introduced, achieving more efficient data transfer rates by increasing the clock frequency and reducing the operating voltage to 1.5V, while significantly lowering power consumption. By the end of winter in 2009, Samsung officially launched the world’s largest single-chip DDR3, with a 4Gb capacity based on a 50nm manufacturing process. However, from the second half of this year, SK Hynix and Samsung have gradually stopped supplying DDR3 memory to the market. Although Micron has not yet discontinued DDR3, it has significantly reduced its supply. DDR3 has now become a niche product, still used in set-top boxes, Wi-Fi routers, switches, and displays.

On January 4, 2011, Samsung Electronics completed the first DDR4 memory. Compared to DDR3, DDR4 has a 16-bit prefetch mechanism (DDR3 uses 8-bit), which theoretically achieves twice the speed of DDR3 at the same core frequency; more reliable transmission specifications further improve data reliability; and the operating voltage is reduced to 1.2V, making it more energy-efficient.

The DDR5 memory standard was released in 2017, and the products were officially launched in 2021. In the DDR4 specification of JEDEC, the maximum capacity of a single memory die was only 16Gb, while with DDR5, the capacity per die reached 64Gb. Furthermore, DDR5’s voltage was reduced from 1.2V to 1.1V, and each channel was expanded to 32/40 bits (ECC), improving bus efficiency, increasing the number of prefetch bank groups to enhance performance, and introducing an ECC error correction mechanism to reduce risks, improve reliability, and lower defect rates. On May 18, 2023, Samsung announced that its 16Gb DDR5 DRAM, manufactured using 12nm technology, had begun mass production.

Currently, the DDR6 memory standard has been unveiled, with JEDEC already preparing the next-generation DDR6 standard and disclosing related plans this year. According to the latest information, DDR6 memory will have even higher frequencies than DDR5, with the starting frequency reportedly reaching 8800MHz, surpassing the highest standard frequency of DDR5 at 8400MHz. The highest frequency is expected to reach 17.6GHz, with plans to push DDR6 memory frequencies to 21Gbps in the future. Additionally, DDR6 memory is expected to use NRZ technology for signal modulation, leading to better signal quality.

The Gradual End of DDR4

The first consumer-grade platform to support DDR5 memory was Intel’s 12th Gen Core (released in 2021). Since then, Intel has supported both DDR4 and DDR5 memory across three consecutive generations of CPUs from the 12th to the 14th generation, giving users a buffer period. During this three-year transition, DDR4 memory still remains highly competitive.

However, support for DDR4 memory will not last forever, and eventually, DDR5 will become the exclusive standard. The end of DDR4’s era has now been determined, and it is expected to happen this year. Both memory manufacturers and CPU makers are driving this trend.

Intel’s desktop processor Arrow Lake-S, released this year, uses a new LGA1851 socket and is paired with the new 800-series chipset motherboards. Compared to the Z790, the Z890 does not show much change, except that it only supports DDR5 memory. This means that after this year, the latest platforms will no longer support DDR4 memory. This move will accelerate the popularization of DDR5 memory and indicate that DDR4 memory modules will gradually be phased out. AMD has already announced that its Ryzen 7000 series processors will no longer support DDR4 memory.

For users, although the cost of building a new system is higher in the short term, the entry-level price of DDR5 has become much cheaper compared to when it was first released in 2021. However, to enhance memory performance, users tend to choose products with higher frequencies, and as a result, DDR5 memory below 6000MHz is rarely selected now.

Memory giants are also gradually reducing their DDR4 production share. Recently, memory giants Samsung and SK Hynix both released quarterly financial reports, and during their earnings calls, they emphasized that they would shift their focus to higher-profit high-end products and might reduce the production of DRAM and NAND flash, especially traditional types of products. SK Hynix plans to gradually reduce its DDR4 production share. In Q3 this year, SK Hynix’s DDR4 production share dropped from 40% in Q2 to 30%, with plans to reduce it further to 20% in Q4, shifting limited production capacity to AI storage and advanced DRAM products.

Last year, Samsung had already started reducing DDR4 DRAM production. In its Hwaseong and Pyeongtaek plants in Korea, Samsung operates six DRAM production lines. Standard products like DDR4 are mainly produced in Hwaseong, while high-end products like DDR5 and LPDDR5 are mainly produced at the Pyeongtaek plant. Market analysts in Korea predict that Samsung plans to reduce its DDR4 production capacity and transfer some of the capacity to advanced products like DDR5 and LPDDR5.

Despite DDR4 holding a dominant position in the market, DDR5 memory technology is advancing. In the latest market trends, DDR5’s frequency has reached around 8000MHz, and it is expected to break through the 11000MHz limit in the future. These improvements offer greater potential for professional gamers and creators, especially in performance-demanding scenarios such as gaming and high-definition video editing. However, DDR5’s price remains relatively high, making ordinary consumers lean towards the more cost-effective DDR4.

Nonetheless, to ensure stable power supply, DDR5 requires the integration of power management chips on the memory, which imposes higher requirements on motherboard wiring and results in a much higher platform cost compared to DDR4. Ordinary users will likely reach a limit of 7000-8000MHz; achieving 10GHz requires liquid nitrogen, which causes extreme latency. At such frequencies, the distance between the memory and CPU becomes too far. To achieve higher practical frequencies, either the interface will need to be redesigned or near-memory computing will be implemented, integrating memory closer to the CPU.

DDR4 Production Capacity Gradually Shifting to China?

Recently, TrendForce released a report indicating that the DRAM market structure is becoming increasingly complex. In addition to traditional categories such as PC, server, mobile, graphics, and consumer DRAM, new product categories like HBM (High Bandwidth Memory) have also emerged. Furthermore, China’s rapid production capacity expansion in recent years is expected to influence the global supply landscape. China’s DRAM supply rate is expected to surpass other regions, primarily focusing on older process technologies such as LPDDR4x and DDR4, which will face greater price reduction pressure.

With the successful development of domestic DRAM chips, Chinese competitors are rising and continually increasing production of traditional memory chips like DDR4 and LPDDR4X. On May 14, 2020, JD.com listed domestically produced DDR4 memory—Guangwei YI Series Pro. Some well-known domestic manufacturers have increased their DRAM monthly production capacity from 40,000 wafers in 2020 to 160,000 wafers, with projections to rise to 200,000 wafers by the end of this year and to 300,000 wafers by 2025. This increase in domestic production is putting significant price pressure on Samsung and SK Hynix for similar products, which is one of the main reasons why these two memory giants are reducing the production of traditional memory chips.

Currently, there is still a large inventory of DDR4-supported electronic products in the market. This will bring demand for domestic companies and could see DDR4 undergo a revival, similar to China’s previous success in the LCD panel industry, where it overtook global competitors through strategic production and innovation.

DDR4 Memory’s Place in Future Markets

While DDR5 continues to emerge as the next generation of high-performance memory, DDR4 will continue to serve as a reliable and cost-effective choice for many consumers in the foreseeable future. Its current dominance in the market, especially in sectors that do not require the highest memory bandwidth, ensures its continued relevance. DDR4 memory remains a go-to option for entry-level PCs, mid-range laptops, gaming systems, and other applications where cost efficiency is crucial and the highest speeds offered by DDR5 are not necessary.

As DDR4 production declines and shifts geographically, China could become a significant supplier of DDR4 in the global market. This shift may not only keep DDR4 prices competitive but also ensure that it remains a practical solution for cost-sensitive consumers. In regions where DDR5 adoption is still limited due to its higher price, DDR4 will maintain its position as the preferred choice for many users. Additionally, with DDR4 continuing to be integrated into various non-PC applications, such as networking devices and consumer electronics, its lifecycle may extend for a number of years.

However, the increasing penetration of DDR5 into the consumer market, especially as prices continue to drop, will eventually cause DDR4 to fade from mainstream usage. As we transition into a future where higher memory performance is expected, DDR4 may become more of a niche product, especially as gaming, video editing, and other memory-intensive applications increasingly benefit from the enhanced capabilities of DDR5.

At present, DDR4 still represents a balanced option for users seeking reliable performance at a lower cost. However, as DDR5 becomes more accessible and more broadly supported by platforms and devices, the end of DDR4’s reign in the consumer space seems inevitable. It will likely remain popular in low-cost systems and specific industrial applications for several more years but will eventually be overshadowed by newer and faster alternatives.

Conclusion: DDR4’s Legacy and DDR5’s Future

DDR4 has played a pivotal role in the evolution of computer memory technology, holding its place as the standard for many years. As the industry pivots toward DDR5, the transition will gradually phase out older technologies, with DDR5 becoming the dominant force in the consumer, gaming, and enterprise markets. While DDR4 may remain relevant in specific sectors and regions, its time as the top-performing and most widely used memory technology is nearing its end.

However, DDR4 will continue to hold a significant portion of the market for several more years, especially as it serves cost-sensitive applications. The increasing capacity and efficiency of DDR5, alongside its improving affordability, will push DDR4 into the background in the next wave of technological upgrades. The future of computer memory lies in the innovations brought by DDR5, and eventually, DDR6, with faster speeds, better power efficiency, and lower latency, making them the go-to choices for next-generation computing needs.

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DiskMFR Field Sales Manager - Leo

It’s Leo Zhi. He was born on August 1987. Major in Electronic Engineering & Business English, He is an Enthusiastic professional, a responsible person, and computer hardware & software literate. Proficient in NAND flash products for more than 10 years, critical thinking skills, outstanding leadership, excellent Teamwork, and interpersonal skills.  Understanding customer technical queries and issues, providing initial analysis and solutions. If you have any queries, Please feel free to let me know, Thanks

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