Large-scale production cuts by manufacturers push DDR5 prices up 20%

Bottom line: Recent production cuts are seemingly having the intended effect on memory pricing. According to a new report from Taiwan Business Times (via My Drivers), fourth quarter contract price quotes have taken a drastic swing in favor of memory manufacturers with DDR5 bumping up 15-20 percent, DDR4 by 10-15 percent, and DDR3 increasing 10 percent. The increases were greater than expected across the board, the publication noted.

Earlier this year, analysts predicted this exact scenario might play out.

RAM and NAND pricing hit rock bottom coming out of the pandemic boom due to oversupply and slowing demand, and manufacturers felt they had to do something to course correct. Dialing back production was the obvious answer, and that is exactly what happened.

Short term production cuts do not appear to be in the cards. According to the report, Samsung and SK Hynix have expanded their cuts, while others like Micron are said to be interested in continuing cuts into 2024.

Looking ahead, industry experts believe the supply constraint combined with increased demand driven by AI will further drive up prices.

The good news for consumers, at least for the time being, is that memory prices are still quite respectable. Over on Newegg, you can find brand-name 32 GB DDR5 kits with attractive heatspreaders for around $100. DDR4 is even more affordable, with 32 GB kits commanding around $75 and 64 GB kits priced at about $125. Of course, speed and timings play a major role in kit pricing so be sure to keep those in mind when shopping.

It is worth noting that some of the low prices we are currently seeing can be attributed to holiday sales.

That said, if you are looking to upgrade or build a new PC, there is no better time than the present. We recently updated our PC buying guide for the holiday season with recommendations spanning a range of price points. Gamers trying to decide between DDR4 and DDR5 may want to have a look at Steven’s latest comparison to see how the two standards stack up across 41 different games.