Although DDR5 hasn’t yet fully replaced DDR4 as the dominant DRAM technology, the 17-year-old DDR3 is reportedly being phased out by major industry players Samsung and SK Hynix.
Following writing done by IT Home, the second half of 2024 will mark the beginning of the end for DDR3 production as the two Korean giants shift their focus to the lucrative HBM3 market driven by the AI era.
Despite DDR3 being very inexpensive and generating minimal profits for large companies, consumers still find it attractive for low-demand applications such as Wi-Fi routers, switches, and low-power IoT devices.
The AI boom, along with political factors and reduced consumer purchasing power, is accelerating the phase-out of older technologies to boost profits by increasing production volume and speed to meet the high demands of companies who want a piece of that AI pie.
Ironically, the reduced supply of DDR3 could lead to price increases due to scarcity, but this will likely continue only until DDR3 offers no significant benefits for any products or applications.
