A slight price correction for computer memory has been observed in China’s key electronics markets, offering a brief respite from a months-long surge. A recent visit by a Securities Times correspondent to the Huaqiangbei market revealed that spot prices for memory have adjusted downwards, and speculative sentiment has cooled. According to data from the Shenzhen market, prices for mainstream DDR4 memory products have fallen by about 10-20% from their 2025 peak, though they remain at historically high levels. This development comes as the global memory industry grapples with a structural shift driven by the insatiable demand for artificial intelligence.
The recent price volatility is not a simple market fluctuation but a consequence of a fundamental realignment in global semiconductor production. The primary cause is the explosive growth of AI, which requires vast quantities of high-performance memory. Major manufacturers like Samsung, SK Hynix, and Micron, who control over 90% of the market, are reallocating production capacity away from consumer-grade memory towards more profitable high-bandwidth memory (HBM) and server-grade DRAM for AI data centers. This strategic pivot has created a significant supply crunch for the consumer electronics sector, triggering what analysts are calling a new memory “supercycle”.
The situation on the ground in Shenzhen’s electronics hub reflects this global tension. While prices have seen a minor dip, they are coming down from an extreme peak.
“DDR4 prices have risen five to six times since the end of 2024. Now they have decreased slightly. Some DDR4 models still cost 1800 yuan ($261),” writes the Securities Times.
Some merchants in Huaqiangbei reported that prices for certain memory modules had surged nearly fivefold since late 2025, with price quotes becoming so volatile they were only valid for a few hours. However, these extreme prices have also begun to deter customers, leading to a situation of “high asking prices, but no buyers” for some vendors, which likely contributed to the recent correction.
While DDR4 prices see a slight adjustment, the cost of other components, such as eMMC embedded storage, has risen significantly. This has a direct impact on consumers. Many computer manufacturers have confirmed that due to the sustained increase in storage component costs, prices for mid-range and low-end laptops have already increased by 5-10%. The situation is more acute for gaming laptops, with planned price increases of up to 33% after the holidays. For some models, the cost could increase by as much as 1000 yuan ($145). Analysts warn that the trend is set to continue, with some major PC brands like Dell and HP preparing for price hikes of 15% to 20% on their 2026 models.
The broader market data underscores the scale of this industry shift. According to statistics from CFM, the combined DRAM and NAND Flash market was expected to exceed $200 billion for the first time in history in 2025, reaching $221.591 billion, a 32.7% year-over-year increase. Analysts from TrendForce predict this AI-fueled supercycle will continue, with sharp price increases expected to persist through the first half of 2026. With the construction of new semiconductor fabs being a multi-year process, significant supply relief is not anticipated in the near future, suggesting that consumers and manufacturers will have to navigate a landscape of high component costs for the foreseeable future.
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