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DDR5 RAM prices to drop substantially in late 2022

DDR5 prices could reach the sweet spot in early 2023. (Image Source: Anandtech)
DDR5 prices could reach the sweet spot in early 2023. (Image Source: Anandtech)
Due to slowdowns with PC component demand, DDR5 prices have been steadily declining in the past few months. Industry insiders believe that the downward trend will continue into 2023, when the gap between DDR4 and DDR5 prices could be significantly reduced.

Intel’s Alder Lake platform with its 12th gen processors launched in late 21 was the first to support a DDR5 commercial implementation. The problem with DDR5 back then was the limited availability and high prices. In the meantime, availability problems have been largely fixed, and, according to a report published by DigiTimes, prices are now expected to see considerable declines in the coming months thanks to slowdowns in overall PC component demand. Additionally, DRAM vendors are also ramping-up production to meet increasing demand brought on by AMD’s Ryzen 7000 processors that are soon launching with support for faster DDR5 memory.

The new DigiTimes report notes that DDR5 contract prices already fell 20% this July and prices should plunge further as we step into 2023, to the point where the gap between DDR4 and DDR5 will be substantially reduced. DDR4 contract prices will continue to fall, as well, but at a slower rate (10-15% this July).

For now, DRAM vendors are unwilling to drastically reduce DDR5 prices and impact the bottom line for the DDR4 chips that are still used even by Intel Alder Lake owners. A gradual price drop into 2023 is more likely as AMD continues to roll out its new Ryzen 7000 products. Even with this steady ramp-up , the report points out that consumer PC demand will not be able to match the DDR5 adoption rate from the industrial and server markets within the next year.


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Bogdan Solca, 2022-09- 1 (Update: 2022-09- 1)