Micron announced the suspension of production, and the price of chips has risen sharply!

As Samsung, Micron and other original manufacturers have locked in the DDR5 and HBM markets, they will gradually stop supplying DDR4, which has led to a wave of stocking up on DRAM, especially a sharp rise in DDR4 prices.
 
Micron officially confirmed that DDR4 will be discontinued
 
Last week, Micron confirmed that it had sent a letter to customers notifying them that DDR4 would be discontinued (EOL, End of Life), and it is expected that shipments will be stopped in the next 2~3 quarters.
 
Micron's executive vice president and chief business officer Sumit Sadana said that DDR4 will continue to be "severely out of stock." Sadana said that the DDR4/LPDDR4 discontinuation notice has been given to customers recently, mainly for the PC and data center fields. It is expected that after the next three quarters, DDR4 DRAM for consumer, PC and data center use will be reduced or reduced in production. In the future, Micron's DDR4/LPDDR4 DRAM will be mainly provided to long-term cooperative customers in "automotive, industrial, and network communications".
 
In February of this year, there were reports that Micron, Samsung and SK Hynix may stop producing DDR3 and DDR4 memory by the end of this year. In April, it was reported that Samsung notified PC manufacturers that it would stop producing DDR4 by the end of this year, with the last order date set for June.
 
Storage products frequently increase in price
 
After the news of the original factory's discontinuation of production was announced, a chain reaction was triggered in the DRAM market, and a wave of stocking appeared.
 
According to TrendForce, after the original factory announced EOL (end of production), buyers rushed to buy to replenish inventory, causing tight supply in the particle spot market from April to May and a sharp rise in prices.
 
By June, the momentum of storage product price increases still showed no sign of stopping. According to the sales manager of a leading storage module manufacturer in Shenzhen: Some DRAM products have seen price increases recently, mainly DDR4 and DDR3. Some have increased by 100% during this period, and some have increased by 50% in a month. This month's increase is very large. ”
 
The supply in the spot market is also in short supply. According to the Science and Technology Innovation Board Daily, the reporter asked several stores in Huaqiangbei about a DDR4 3600MHz 16GB bare stick, and the general feedback was "out of stock", indicating that this specification has been in short supply on the channel side. After continuous inquiries for memory sticks of various frequencies and capacity specifications, the answer received was almost "out of stock".
Many Huaqiangbei merchants reported that DDR4 prices have risen sharply recently and are accompanied by a shortage of spot supplies, while DDR5 prices are relatively stable. SSDs have previously risen slightly, so their prices are currently stable.
 
The flash memory market also shows that the channel DDR4 memory sticks have the strongest growth, and the cumulative price increase of some products in just two weeks has exceeded 30%. The price of low-capacity eMMC has not only doubled compared to the end of last year, but 16GB/32GB/64GB eMMC has basically the same price. With the rise of MLC NAND supply is decreasing, which will accelerate the further upgrade of storage capacity of application terminals such as TV/security/POS machines in the future.
 
The flash memory market expects that server DDR4 and DDR5 will continue to rise in price in Q3, but the increase will narrow, or fall in the range of 10%-15%. The price of server DDR5 products in the third quarter is expected to increase slightly compared with the second quarter, and in the fourth quarter, as the original DDR5 production capacity increases and the yield rate increases, the supply side will release production capacity in a concentrated manner, and server DDR5 products will face price fluctuations.