Memory Chip Shortage: What's Happening to DDR4 and DDR5 in 2026

Introduction

If you work in almost any corner of the technology industry, you have likely heard about the memory chip shortage. Since mid-2025, when major memory manufacturers accelerated the phase-out of DDR4 and shifted more production capacity toward AI and server memory, prices for many types of memory have skyrocketed.

DDR5 has moved just as fast: TrendForce recorded mainstream DDR5 2Gb×8 spot prices climbing more than 300% between September and November 2025 alone.¹

What's causing the memory chip shortage?

In the past, DRAM shortages tended to be cyclical: manufacturers cut back capacity during price downturns, supply tightened for a few quarters, then new capacity came online and prices fell again.

This time, however, we are dealing with a different situation. The main force behind RAM and flash-storage products such as SSDs reaching record-high prices is the AI boom.

AI data centers consume huge quantities of HBM, server DDR5/RDIMMs, and enterprise SSD storage. Manufacturers have been reallocating production toward these higher-margin products, which leaves less capacity for ordinary PC, embedded, and consumer memory.²

DDR4 has been hit especially hard because manufacturers are using more of their production capacity to make memory for AI systems. At the same time, companies like Samsung, SK hynix, and Micron have been cutting back or ending production of older DDR4 memory.

Demand for DDR4 is still strong, so there is less supply available and prices have risen sharply.

Effect on consumer vs. embedded and industrial products

For consumer products (PCs, smartphones, tablets, and game consoles), the main effects of the shortage are either higher prices or lower specifications.

Gartner projects that in 2026 PC prices are set to rise by roughly 17% and smartphones by 13%. By the end of the year, combined DRAM and SSD prices could increase by around 130%.³

Because memory usually represents around 10–20% of the manufacturing cost of a smartphone, lower-margin manufacturers like Xiaomi, Oppo, and Vivo may be affected more heavily than companies such as Apple or Samsung, which have more room to absorb higher component costs. Consumers are likely to see quiet cost-cutting measures - electronics may ship with 8 GB of RAM instead of 16 GB, and manufacturers could use cheaper displays or camera modules. Entry-level product ranges could also shrink.⁴

The situation may be even more difficult for embedded and industrial sectors. Products manufactured for automotive, medical and defence industries depend on older memory standards such as DDR3, DDR4, LPDDR4 and LPDDR4X. In many cases, major manufacturers are phasing out these parts completely.

What's the best strategy for product developers right now?

Here are a few tips on how to approach the memory shortage when developing your product:

• Check the component's lifecycle
  
  

A memory chip that is available today may be harder to source when your product reaches production. Before committing to a part, check its lifecycle status and the supplier's long-term support plans. This matters a lot for products expected to stay in production for many years.

• Choose a platform with memory options
  
  

When selecting a processor, look at what memory types and parts it supports. Check how many realistic choices you have. Some processor vendors validate memory from several manufacturers, which gives you more room to respond if one supplier raises prices or discontinues a part.

A System-on-Module is one way to get this flexibility at the board level - the memory sits on a swappable module rather than being soldered into your custom carrier design, so a part change doesn't automatically mean a respin. 

• Have a backup option
  
  

If the memory chip you choose becomes hard to get, replacing it won't necessarily be simple. A different chip may require software changes, new testing, or even changes to the board. Before the design is finished, it is worth checking what other parts could realistically be used and how difficult switching to them would be.

• Do not choose memory generation by age alone
  
  

Older memory is not automatically a bad choice, and newer memory is not automatically safer. Some embedded platforms still have long-term support for LPDDR4 or DDR4. What matters is the lifecycle of the specific processor-memory combination and the suppliers behind it, rather than simply choosing the newest standard available.

When will the shortage end?

There is no clear date when the memory market will return to normal, but there is growing agreement that 2027 is unlikely to bring much relief. Most current forecasts point to tight supply continuing into 2028, and some industry leaders believe the imbalance could last much longer.

While new fabs and production lines are being built, semiconductor capacity takes years to bring online. TrendForce expects DRAM supply to remain tight throughout 2027 and says that, although new capacity will begin appearing during that year, meaningful additional output is unlikely before 2028.⁵

SK Hynix is even more cautious. In a July 2026 interview, CEO Kwak Noh-jung told Reuters he expects "the worst year in the industry's history from the supply perspective" - and that demand would likely outpace the company's capacity well past 2030.⁶

Samsung is giving a similar message. During its Q2 2026 earnings discussions, the company indicated that supply constraints are likely to become more severe in 2027 than in 2026, with tight conditions continuing until at least 2028.⁷

Supply should improve gradually as manufacturers expand existing plants, bring new factories online, and become more efficient at producing advanced memory. New fabs have to be built and equipped, and production yields need time to improve.

The most realistic expectation is that in 2028 supply pressure will start becoming more manageable - but even then, recovery may happen unevenly. HBM and newer server memory could stabilize first, while DDR4, LPDDR4 and other legacy parts remain expensive or difficult to source.

How Grinn can help you

If you'd like to learn how Grinn supports its customers through the memory chip shortage crisis, and how we approach component selection, lifecycle planning, and long-term supply risk, get in touch with our team. We’ll help you evaluate the options and choose a platform that gives your product the best chance of staying available and cost-effective over its full lifecycle.

Sources:

¹ https://www.trendforce.com/news/2025/11/19/insights-memory-spot-price-update-ddr5-prices-up-307-since-september-as-module-costs-poised-to-surge/
² https://www.trendforce.com/news/2025/07/09/news-ddr4-exit-timeline-unfolds-for-top-memory-makers-plans-for-samsung-sk-hynix-and-micron/
³ https://www.gartner.com/en/newsroom/press-releases/2026-02-26-gartner-says-surging-memory-costs-will-reduce-global-pc-and-smartphone-shipments-in-2026
⁴ https://techjournal.org/ai-memory-shortage-device-prices
⁵ https://www.trendforce.com/presscenter/news/20260730-13158.html
⁶ https://finance.yahoo.com/technology/articles/sk-hynix-ceo-sees-worst-182328326.html?guccounter=1
⁷ https://www.investing.com/news/transcripts/earnings-call-transcript-samsung-electronics-posts-record-q2-2026-profit-as-ai-demand-surges-93CH-4822292