The availability of DDR4 memory remains low, causing manufacturers to pay a premium for the older technology. AI is the culprit.
The availability of DDR4 memory continues to decline, driving up the price. This is not surprising: in June, it was already revealed that Samsung and Micron would cease production of DDR4 RAM. The supply is too small for the demand, causing DDR4 memory to be currently more expensive than faster DDR5 memory.
Digitimes reports that 16 GB (2×8) now costs $9.17 per chip, while DDR5 in the same configuration is priced at $5.99 per chip. DDR4 is a legacy technology, but there are still many older CPUs in circulation that use it. Especially for budget systems, manufacturers can reduce costs by opting for older CPUs, but this requires DDR4 RAM.
AI is to Blame
AI is the culprit. Memory manufacturers prefer to use their available production capacity to make DDR5 and HBM memory. Both forms of faster memory play a role in modern (AI) systems. DDR5 is also the standard for modern computers, but HBM memory is particularly popular for AI accelerators.
Manufacturers have no motivation to increase DDR4 capacity. DDR5 and HBM5 have more customers, and manufacturers who want the legacy memory have no choice but to pay a premium.
This situation is not likely to change soon. The price of memory will probably continue to evolve, as the US is using its economic power to restrict memory manufacturing by South Korean companies in China.