Price of 25-year-old DDR2 memory set to more than double thanks to AI-driven RAM-armageddon

Date:
Thu, 25 Jun 2026 00:20:00 +0000

Description:
AI infrastructure demand is consuming advanced DRAM supply, pushing prices sharply higher across DDR4, DDR3, and even 25-year-old DDR2 memory generations.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter AI infrastructure spending has broken the global memory supply chain DDR2 prices are set to surge 60% in Q2 2026 alone Some manufacturers are redesigning DDR3 systems around DDR2 to secure components The AI boom is creating unexpected consequences across the memory industry, including renewed demand for technologies introduced more than two decades ago.

As manufacturers prioritize advanced products serving AI infrastructure,
older memory generations are becoming increasingly difficult to source in meaningful quantities. That shift is now pushing DDR2 prices sharply higher despite the technology first appearing around 25 years ago. Latest Videos
From Watch full video here: Legacy memory demand rises as newer DRAM becomes scarce DRAM shortages have pushed memory prices sharply higher, with DDR4 contract pricing reportedly surging by as much as 2200% at some point.

Industry executives such as Nothing CEO Carl Pei and Framework have warned that supply constraints and elevated pricing are unlikely to ease in the near term. You may like The global memory shortage: The hidden bottleneck behind the AI boom Micron warns 'AI is in very early innings' and RAM crisis isn't going away AI memory crunch will make smartphones more expensive

According to TrendForce, these structural changes in the DRAM market are forcing buyers to move backward through successive memory generations, and limited mature-node supply is pushing some brands to switch from newer memory to older ones that are available in larger volumes.

TrendForce estimates that DDR2 contract prices will increase by roughly 55%
to 60% during the second quarter of 2026. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me
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Prices are then expected to climb another 35% to 40% in Q3, creating one of the strongest pricing surges seen in the legacy memory segment for years.

The situation stems partly from decisions made by the world's largest DRAM suppliers, which continue directing manufacturing resources toward advanced memory technologies.

Growing demand for HBM and server DRAM, both closely linked to expanding AI infrastructure investments, has reduced wafer allocations available for older consumer-focused products. What to read next How AI demand is redefining enterprise infrastructure strategy Memory expert predicts huge RAM price
hikes over the rest of 2026 Experts say your next SSD or memory upgrade will get a lot more expensive

As availability tightens, companies purchasing DDR4 memory have increasingly turned to Taiwanese suppliers for additional capacity.

Demand has therefore spread across several generations of products, creating pressure that now extends into DDR3 and DDR2 markets.

Some manufacturers have reportedly replaced DDR4 designs with DDR3 solutions, while certain DDR3-based systems are being redesigned around DDR2 memory to improve component availability. Suppliers gain leverage as production shifts toward higher-margin products The imbalance between demand and available output has strengthened the negotiating position of some memory
manufacturers.

With supply unable to keep pace, vendors have gained greater flexibility to raise contract prices while concentrating on products that generate stronger returns.

Winbond, one of the key suppliers of DDR2, is reducing the production of
older standards and redirecting the capacity toward DDR3, DDR4, and LPDDR4 products.

Such a transition is expected to place additional strain on DDR2 availability during the coming quarters.

As production contracts, buyers dependent on legacy platforms could face increasing competition for a shrinking pool of components.

Manufacturers like Elite Semiconductor Memory Technology (ESMT), however, are increasing their focus on DDR2 production within their existing wafer allocation.

The company hopes to capture the surging demand in an effort to improve profitability while helping address part of the supply shortfall from Winbond's withdrawal.

Whether these supply conditions represent a temporary market distortion or
the beginning of a prolonged shortage remains uncertain.

What is becoming clear is that AI-driven demand for advanced memory is now affecting even very old product generations, creating ripple effects that few expected to reach DDR2. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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