Samsung Electronics, SK hynix, and the American company Micron, among other major memory manufacturers, are significantly reducing the production of mobile DRAM 'LPDDR4X', leading to projections that the price of the legacy semiconductor LPDDR4X will rise.
On the 17th, market research firm TrendForce noted, "Major memory suppliers from Korea and the United States are expected to greatly reduce or halt LPDDR4X production in 2025 and 2026," stating, "There is a mismatch between demand and supply because many mobile processors are still not compatible with the latest LPDDR5X."
It also mentioned, "Smartphone brands have been strengthening their procurement of LPDDR4X to avoid production disruptions," adding, "This surge in demand is a major reason for the recent increase in contract prices."
Memory companies are transitioning from the older product LPDDR4X to the more profitable LPDDR5X. The price increase is expected to continue at least until early next year, and when the adoption of LPDDR5X becomes significant, particularly in mid-range smartphones, there may be a moderation in the price of LLPDDR4, according to TrendForce's analysis.
In particular, with the supply and demand imbalance and accelerating price increases for LPDDR4, the price gap between LPDDR4X and LPDDR5X is expected to narrow sharply in the third quarter.
TrendForce explained, "If the supply of LPDDR5X improves in 2026, contract prices are expected to be lower than those of LPDDR4X," adding, "This will provide an additional incentive for brands to shift to LPDDR5X."
It further stated, "The rapid validation of LPDDR5X and upgrades across the industry will reduce dependence on LPDDR4X," noting that "the sharp rise in LPDDR4X prices is putting significant cost pressure on mid-range smartphone products, and some brands may even withdraw from the budget market."