Samsung is finally seeing the light, and wider adoption of DDR5 DRAM may help it escape from a bad financial quarter. Samsung's memory division is reportedly working to increase DDR5 production to benefit from the "reviving" DRAM industry. The DRAM industry has been sluggish, especially this year, with consumer demand at its lowest. Additionally, the PC market has been slow to transition to the newer DDR5 standard, primarily due to cost issues.
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Industry leaders such as Samsung and SKHynix have already slashed production capacity, but this was only for older DDR4 memory, and the companies are now turning their focus to future memory standards, namely DDR5.
DRAM Industry Second Quarter Report | Image Source: TrendForceTrendForce
Taiwan’s Economic Daily reported that Samsung has decided to strengthen the power management IC used in DDR5 technology to cope with future demand. Samsung, one of the few manufacturers that specializes in IC production, believes that DDR5 will be more widely used in the coming months and demand is expected to reach new levels. This prediction is not wrong, because CPU manufacturers such as Intel and AMD will completely switch to DDR5 in future product lines, such as Arrow Lake, which will end compatibility with DDR4.
In addition, AMD will pay more attention to the AM5 product line next year. The latest Ryzen8000 "GraniteRidge" APU will be used in desktop computers, and "Strix/HawkPoint" will be used in notebook computers.
In fact, major PC platform manufacturers such as Intel and AMD have already expected that new platforms launched next year will begin to support DDR5 specification DRAM, which means that the demand for DDR4 will gradually decline.
In addition to consumers, the server computing industry is also expected to quickly adopt DDR5 as Intel's fifth-generation Xeon "Emerald Rapids" will also only support DDR5. This suggests that demand from the DRAM industry may increase significantly due to the industry's shift to the DDR5 standard. Furthermore, if we look at the cost trends since the start of DDR5, the situation is much better, it is closing the price gap with traditional DDR4, convincing consumers to switch to the new standard.