SEOUL, April 28 (Korea Bizwire) — As competition from Chinese firms intensifies and prices for older memory products plunge, major global semiconductor manufacturers are accelerating a strategic shift: phasing out legacy DRAM production and concentrating on high-end, high-margin memory technologies.
According to Taiwanese market research firm TrendForce and local media reports on April 27, Samsung Electronics has begun scaling down production of older DDR4 DRAM chips — used in PCs and mobile devices — and is now moving to gradually phase out third-generation high-bandwidth memory (HBM2E) products as well.
The company plans to prioritize production of fifth-generation HBM3E and sixth-generation HBM4 chips.
U.S.-based Micron Technology has also informed customers that it will discontinue certain legacy DDR4 server modules, while South Korea’s SK hynix is similarly reducing DDR4 output.
The industry’s newest DRAM standards, DDR5 and HBM3E, are increasingly seen as the future of memory supply chains. DDR5 is commonly installed in CPUs for PCs and data centers, while HBM products power AI accelerators made by tech giants like Nvidia and AMD.
While companies have not publicly declared production halts for specific legacy lines, they have hinted at the shift through announcements about advancing to next-generation manufacturing processes and expanding high-value product portfolios.
During its January earnings call, Samsung said it was “accelerating ramp-up of advanced nodes and actively increasing the share of high-value-added products such as HBM, DDR5, LPDDR5, and GDDR7.” The company aims to slash DDR4 and LPDDR4 sales — which made up over 30% of revenue in 2024 — to single digits this year.
SK hynix also revealed plans in late 2024 to reduce DDR4 and LPDDR4 output ahead of schedule, while ramping up investment in HBM and DDR5 production.
Legacy DRAM prices have plunged in recent years under pressure from Chinese manufacturers. According to DRAMeXchange, the average fixed transaction price for PC DRAM (DDR4 8Gb 1Gx8) fell from a peak of $8.19 in 2018 to just $1.35 as of March 2025.
Further pressure looms as Chinese memory maker Changxin Memory Technologies (CXMT) continues expanding DDR4 production, potentially prolonging the downturn.
The major players’ pivot away from older DRAM reflects a broader effort to escape shrinking-margin markets. Even in HBM, the same pattern is emerging. The HBM2E standard, now considered two generations old compared to HBM3 and HBM3E, is being sidelined as demand concentrates on the latest technologies.
SK hynix, the market leader in HBM, now generates most of its HBM sales from newer products, with negligible reliance on HBM2E. Micron has skipped over earlier HBM generations entirely, directly entering the market with HBM3E chips.

SK hynix HBM exhibited at the ‘TSMC 2025 Technology Symposium’ (Image provided by SK hynix Newsroom)
SK hynix is also betting on higher profitability by expanding shipments of its 12-high stack HBM3E products, which command a 50–60% premium over 8-high versions. The company plans to complete preparations for mass production of next-generation HBM4 within 2025, with HBM3E 12-high and HBM4 expected to dominate its output in 2026.
“Maximizing profitability means selling the latest, highest-spec memory chips to customers like Nvidia,” said an industry source. “And we’re seeing the same trend in NAND flash, where manufacturers are shifting away from older products and focusing on enterprise SSDs and high-layer stacking technologies.”
As the memory landscape rapidly evolves, companies that pivot fastest to cutting-edge products appear best positioned to thrive in the AI-driven semiconductor era.
Kevin Lee (kevinlee@koreabizwire.com)