Samsung Shifts Focus to DDR5 Memory Production Amidst Market Deficit
Amidst a memory deficit, Samsung Semiconductor finds DDR5 memory production more profitable, potentially making DDR5, LPDDR5X, and GDDR7 more accessible.
In an unexpected turn of events, Samsung Semiconductor has discovered a silver lining amidst the ongoing memory deficit. The tech giant is now able to produce certain types of DDR5 memory with a whopping 75% margin, making it a more profitable venture than assembling HBM modules, reports ComputerBase, citing DigiTimes. This explicit shift to DDR5 production could potentially make DDR5, as well as LPDDR5X and GDDR7, more accessible in theory. However, in a market dictated by producers, it is unlikely that average consumers will see a significant dip in prices. So, what triggered Samsung's sudden pivot to DDR5? It seems to be a matter of profit margins. Samsung's quick HBM3E yields a profit of about 30%, while competitor SK Hynix enjoys 60%. SK Hynix had the early bird advantage, establishing long-term contracts with AI companies that no one wants to rewrite, rendering Samsung's offer superfluous. By 2026, the transition to the HBM4 standard is expected, and Samsung stands a good chance of carving out a larger market share by tailoring individual offers for each client.
