DDR5 memory may soon become more expensive than it currently is, according to electronics supplier 12chip. The DRAM market hasn’t suffered much so far as semiconductor manufacturers worldwide grapple with logistics and component prices.

Even though DRAM production is based on the latest generation DDR5 standard, it is not made with pioneering technologies, but with older and mature technologies (such as 14nm). According to 12chip, manufacturers have no problem scaling their DRAM production with this legacy technique to meet demand.

DDR5 RAMs, on the other hand, come with integrated Power Management Integrated Circuit (PMIC) chips, which DDR4 lacks. According to the source, these PMIC chips are affected by current logistical issues and can negatively impact DDR5 memory.

Currently, delivery times for PMIC orders are estimated at 35 weeks. This adds additional burden to system assemblers and DRAM manufacturers, creating delays and bottlenecks throughout the supply chain.

Additionally, PMIC chips for DDR5 cost ten times more than equivalent DDR4 power management solutions, which does not bode well for future memory prices. If this situation continues, DDR5 modules may be sold for higher prices due to the deteriorating supply/demand ratio.

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Michael Lewis


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