The world's three major DRAM manufacturers have decided to shift from DDR4 specifications to advanced process products. Following the announcement by two major Korean storage manufacturers that they will discontinue DDR4, Micron has confirmed that it has sent a letter to its customers notifying them of the discontinuation of DDR4 and expects to gradually cease shipments in the next 2-3 quarters.
Sumit Sadana, Executive Vice President and Chief Commercial Officer of Micron, stated that DDR4 will continue to be severely out of stock, and in the future, Micron's DDR4/LPDDR4 DRAM will only be strategically supplied to long-term customers in three major areas.
Sadana stated that the notice of discontinuation of DDR4/LPDDR4 has been handed over to customers recently, mainly targeting the PC, smartphone, and data center fields. It is expected that DDR4 DRAM for consumer, mobile, PC, and data center use will be reduced or downsized in the next three quarters.
In addition, Micron has simultaneously released its future market strategy direction, which will focus on areas with lower profits than other market segments, improve pricing power, ensure increased profits, and specifically point out that product pricing and profit performance in the mobile device market lag behind other markets, which will promote its stable and strong pricing power in the coming months.
Previously, market news showed that Micron Technology's DDR4 memory quotation experienced a significant surge in June, with an increase of up to 50%. Both 8Gb and 16Gb specifications of DDR4 memory have shown strong spot prices, and the market prices are in a chaotic state.
Industry insiders have revealed that Samsung Electronics has announced that DDR4 memory will end its product lifecycle at the end of the year, with the final order date set for early June. At present, almost all memory module manufacturers are unable to obtain Samsung DDR4 memory supply. Market data shows that the spot price of Samsung DDR4 8Gb has risen to $4.8, far higher than the recent average spot price of about $3.3.
