Samsung has lowered the price of its 4Gb DDR4 Electronic Componentsin a strategic move by the company to further accelerate the industry's transition from DDR3 to DDR4, according to industry sources, DIGITIMES reported.
Samsung continues to scale back its DDR3 Electronic Component production while offering more cost-effective DDR4 chip prices to attract orders from applications that still require DDR3 memory, such as consumer electronics, the sources said.
As Samsung cuts DDR4 Electronic Components prices, suppliers of DDR3 memory may also lower their offers to maintain orders. Sources said the drop in consumer DRAM prices is expected to expand in the second half of this year.
The sources pointed out that in July alone, the contract price of 4Gb DDR4 memory has dropped about 8%, although the price cuts by major suppliers are "unreasonable" from the perspective of manufacturing costs. And consumer DRAM prices are likely to fall 15 percent in the third quarter.
In addition, while phasing out DDR3 production, Samsung and SK Hynix have accelerated the conversion from old to new production lines and expanded their DDR5 chip production. According to industry sources, these moves will limit their overall DRAM growth.
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