Samsung halts production, DDR4 chips skyrocketing by 50%? Domestic manufacturers are going to make a lot of money.

Technology is constantly advancing, so there will always be companies discontinuing some relatively outdated products and shifting to more advanced product lines.

Taking DDR memory as an example, manufacturers will upgrade from Ddr3 to DDR4, and then to DDR5 and DDR6, gradually phasing out older products and switching their production lines to produce more advanced products.

On the one hand, it's because the related supporting enterprises will gradually stop supporting old products and only support new ones. On the other hand, due to fierce competition and low profits in the old product market, large enterprises will gradually give up.

For instance, earlier, companies like Samsung, SK Hynix, and Micron abandoned the production of DDR3 memory chips and shifted to DDR4 and DDR5.

Recently, with AMD and Intel announcing that their latest Cpus only support DDR5 memory and no longer support DDR4 and lower-generation memory, major manufacturers such as Samsung have stated that they will abandon the production of DDR4. It is reported that Samsung has already received orders for DDR4 recently.

SK Hynix and Micron also stated that by the end of 2025, they will fully abandon DDR4 memory and shift to DDR5, HBM, and other technologies.

However, due to these manufacturers abandoning DDR4 memory, there was a temporary shortage in the market, leading to price increases.

For example, recent media reports have claimed that due to Samsung's production halt, memory module manufacturers have been unable to obtain Samsung DDR4 supplies, resulting in a 50% increase in the price of Samsung DDR4 products on the market.

In addition, products such as DDR4 from Micron and SK Hynix have also seen price increases ranging from 30% to 50%. This is because these two major manufacturers are also reducing their DDR4 production capacity and planning to cease production by the end of the year.

However, under such circumstances, Chinese enterprises stand to make a lot of money. Why do I say so? The reason is that Chinese manufacturers are currently inferior in technology and cannot compete with these major players in DDR5. But when it comes to DDR4, they are not afraid at all.

Taking Changxin as an example, in terms of technological advancement, it indeed lags behind companies like Samsung. Therefore, DDR5 is not competitive enough against Samsung, SK Hynix, and others. However, DDR4 is Changxin's specialty and quite competitive. At the same time, its production capacity is also large, as DDR4 was its main product in the past.

Now that DDR4 prices have risen so much, Changxin will naturally seize the opportunity to make a fortune. This is equivalent to Samsung, Micron, and SK Hynix giving up more of the DDR4 market to Changxin, which they will naturally accept with pleasure.

However, one should seize the opportunity and stop at the last copper plate. After all, major manufacturers are fully committed to developing DDR5 and HBM chips. If we don't compete with them at the high-end, we will forever lag behind and have to pick up what they leave behind.

Therefore, although Changxin has accepted the DDR4 market with a smile, it also stated that it will gradually shift towards DDR5 and HBM chips, rather than just thinking about picking up this relatively backward DDR4 market. It is clear that Changxin not only aims to make money in mature markets, but also wants to compete with Samsung and others in advanced products.