Samsung's memory division is reportedly moving towards ramping up DDR5 production to benefit from the "recovering" DRAM industry.
Samsung Finally Sees A Ray of Light, Wider DDR5 DRAM Adoption May Rescue Them From Negative Financial Quarters
Things haven't been good for the DRAM industry, especially this year, since consumer demand has been at its lowest. Moreover, the transition to the newer DDR5 standard has been slow within the PC market, mainly due to cost concerns; however, the current indicators suggest that the situation is progressing toward improvement.
There have been wide cuts in production capacities by industry leaders such as Samsung and SK Hynix, but that is limited to the older DDR4 memory, and companies are now shifting their focus towards the future memory standard, which is DDR5.
Taiwan Economic Daily reports that Samsung has decided to ramp up power management ICs utilized in the DDR5 technology in an effort to cope with future demand. Samsung, one of the few manufacturers specializing in IC production, believes that the industry will see a much wider DDR5 adoption in the upcoming months, and demand is expected to reach new levels. This prediction is not wrong since CPU manufacturers like Intel and AMD are completely shifting to DDR5 in future lineups, such as the Arrow Lake, ending compatibility with the DDR4.
Furthermore, AMD will put even more focus on its AM5 lineup in the coming year with the latest Ryzen 8000 "Granite Ridge" APUs for desktops and "Strix/Hawk Point" for laptops.
In fact, major PC platform manufacturers such as Intel and AMD are already expected to launch new platforms next year that will begin to support DDR5 specification DRAM, which means that the demand for DDR4 will gradually decline.
Apart from the consumer side, DDR5 adoption is also predicted to rapidly increase in the server computing industry since Intel's 5th Generation Xeon "Emerald Rapids" will also come with DDR5 support only. This suggests that the DRAM industry may see much-improved demand due to the industry's shift to the DDR5 standard. Moreover, if we look at the cost trends of DDR5 since the start, things are in a much better situation, and it is closing the price gap with the traditional DDR4, making consumers convinced to switch to the new standard.
It is fortunate to see reports of an "economic rebound" of the DRAM industry since the financial figures we saw were really disappointing. We hope things improve both for businesses and consumers, especially with the debut of next-gen CPU lineups.
WccftechContinue reading/original-link]
