Samsung Electronics is set to phase out production of its older-generation DDR4 dynamic random-access memory (DRAM) chips, as the company accelerates its transition to higher-value memory products such as DDR5 and high bandwidth memory (HBM). The strategic shift comes amid mounting pressure from Chinese competitors, particularly Changxin Memory Technologies (CXMT), which is expanding output of low-cost legacy DRAM at a rapid pace.
Citing industry sources, Taiwan’s Commercial Times reported on Apr. 23 that Samsung recently informed clients in the island’s semiconductor materials supply chain of its plans to discontinue DDR4 and LPDDR4 production. The company urged customers to submit final orders by the end of the first half of this year.
According to the report, Samsung halted production of 8-gigabit (Gb) LPDDR4 chips manufactured using its 1z nanometer process as of April. It is requesting final orders be completed by June, with all remaining shipments to be fulfilled no later than October.
LPDDR, or low-power DDR, is a memory type primarily used in mobile devices. The LPDDR4 variant, now considered legacy, has been widely adopted in budget smartphones in China. Samsung’s move to withdraw from this segment reflects a broader effort to pivot toward more profitable products, as CXMT continues to flood the market with competitively priced, older-generation DRAM.
Samsung is currently retooling its DRAM manufacturing lines to support next-generation products, including DDR5.
“While delivery schedules may differ depending on the client, Samsung’s transition away from DDR4 is clearly underway,” a semiconductor industry official said.
The company’s decision follows its complete withdrawal from DDR3 production last year. The accelerated timeline for exiting DDR4 production highlights the growing challenge posed by China’s rapidly expanding memory industry.
CXMT, one of China’s major DRAM manufacturers, is expected to sharply increase its DDR4 output in 2025, far exceeding initial projections. According to data from research firm Omdia, CXMT’s DRAM production is forecast to reach 2.73 million wafers this year, a 68% increase from 1.62 million wafers in 2024. Analysts had initially predicted a 20% increase, but the latest outlook suggests a surge more than triple that figure. If sustained, CXMT could soon close the gap with Micron Technology, currently the world’s third-largest DRAM supplier.
Samsung Electronics and SK hynix, South Korea’s two dominant memory chipmakers, have both acknowledged the growing threat from Chinese rivals. During an earnings call last year, SK hynix noted that the influx of low-cost DRAM from China was beginning to weigh on its financial performance. Samsung echoed those concerns in its fourth-quarter earnings call, saying it anticipated intensifying competition in DDR4 and LPDDR4. The company revealed plans to slash the revenue share of these legacy products from the low-30% range in 2024 to single digits by the end of the year.
