Samsung Postpones DDR4 Phase-Out After Locking Long-Term Server Supply Deal
Rising DDR4 prices and a guaranteed server contract have pushed Samsung to delay shutting down its aging memory production line — but consumers won’t benefit.
Samsung has reportedly decided to delay the end-of-life (EOL) of its DDR4 memory production, reversing plans announced earlier this year. According to a DigiTimes report (machine translated), the move comes as 16GB DDR4 modules surge to nearly $60 on the spot market, making continued production unexpectedly profitable.
Rather than expanding capacity, Samsung will extend operations on its existing DDR4 lines to capitalize on strong pricing — primarily for enterprise and server customers.
Long-Term NCNR Contract Secures DDR4 Output
A key factor behind the decision is the signing of a long-term NCNR (non-cancellable, non-returnable) contract with a major customer. Under this type of agreement:
Pricing and volume are fixed
Orders cannot be canceled or modified
The buyer is obligated to purchase the contracted supply
This structure protects both parties from the volatile memory market, which is currently being reshaped by explosive AI-driven demand.
Why NCNR Deals Benefit Samsung
The NCNR contract allows Samsung to:
Lock in predictable revenue from DDR4
Keep legacy production lines profitable
Hedge against a potential HBM or DDR5 oversupply if AI demand cools
Sources suggest the contract price may exceed $20 per 16GB DDR4 module, with Samsung still evaluating whether to push prices higher. While this is significantly lower than current spot prices, it guarantees long-term stability.
No Relief for Consumers or PC Builders
Despite the extension of DDR4 production, consumers should not expect any improvement in availability or pricing. The customer securing the NCNR agreement is reportedly focused on server and enterprise deployments, not consumer PCs or DIY markets.
No major consumer-facing company has announced plans to secure similar long-term DDR4 contracts, meaning retail shortages and elevated prices are likely to persist.
AI Demand Reshapes the Memory Market
Samsung originally planned to phase out DDR4 to prioritize HBM and DDR5 production, driven by soaring AI accelerator demand. However:
Heavy investment in HBM has constrained DDR5 supply
DDR5 prices have surged
This has pushed OEMs and data centers back toward DDR4
As a result, Samsung — along with other major memory manufacturers — has chosen to delay DDR4 shutdowns, though production is now largely earmarked for industrial and enterprise clients.
What This Means Going Forward
DDR4 will remain in production longer than expected
Supply will favor servers and enterprise customers
PC builders and enthusiasts should not expect price relief
Memory shortages could persist into 2026
Samsung’s decision highlights how AI-driven demand is reshaping the entire memory ecosystem, keeping older technologies alive far longer than initially planned — but not necessarily for everyday users.
0 Comments