In recent years, DDR5 prices have dropped dramatically, allowing anyone to enjoy the latest generation memory modules at very low costs. However, the golden days of super-cheap DDR5 may be coming to an end. PC enthusiasts and those who build their own computers may need to prepare for a significant increase in the cost of DDR5 RAM. According to a new report from TrendForce,, the prices of new generation memory they could rise by 20% over the next year.
The person responsible for this possible increase is the growing demand for artificial intelligence chips. HBM (High Bandwidth Memory), a type of high-speed, high-capacity memory particularly in demand in the AI industry, is seeing a surge in demand that is putting pressure on production and pricing. The famous market research firm predicts a 5-10% increase in HBM prices in 2025. This reinvigoration of the HBM market will have a domino effect on DDR5, with an estimated 15-20% increase. There are basically two reasons for this phenomenon.
- Greater demand for HBM: Demand for HBM from the AI industry is steadily increasing, with Micron and SK Hynix already running out of stock for 2024 and much of 2025.
- Shifting production priorities: Memory makers, faced with a more profitable HBM market, may shift their focus from DDR5 production to HBM, reducing availability of the former and driving up prices.
The consequences of this price increase could be significant for the PC market. DDR5 is the standard memory for newer computers, and an increase in its cost could result in higher prices for the PCs themselves, especially for high-end models.
The impact may not be limited to PCs alone, in fact, other electronic devices that use DDR5, such as smartphones and tablets, may also experience a price increase. The only hope for keeping prices down is for manufacturers to increase production of DDR5, however, with demand for HBM steadily growing it is unclear whether this will be enough to curb the price rise. Only time will tell whether the DDR5 price increase will be temporary or permanent.
