Adoption of DDR4 memory facing delays

The fall of the PC market and subsequent stabilization of DRAM prices could mean a longer life for DDR3 DRAM

By , IDG News Service |  Hardware

The memory market is feeling the effects of a fall in PC shipments with the subsequent stabilization of DRAM prices, which industry observers say will delay the wide adoption of the upcoming DRAM called DDR4.

The latest PCs and servers come with DDR3 SDRAM and mobile devices have just started getting a type of low-power memory called LPDDR3 (low-power DDR3). DDR4 is the successor to DDR3, and consumes 20 percent to 40 percent less power while offering double the throughput of its predecessor.

But with memory prices stabilizing after years of double-digit drops, analysts said that DDR3 DRAM will likely have a longer-than-expected life, which could delay the wide adoption of DDR4 in computers. DRAM prices have stabilized as demand for DDR3 has exceeded supply, and the number of memory makers has also dwindled. Samsung, SK Hynix and Micron dominate the DRAM market, while other memory makers have either been acquired or are focusing on the more profitable NAND flash business.

The volume shipments of PCs and servers are not enough to justify an early switch to DDR4, analysts said. Also, a lot of focus is now on the fast-growing tablet and smartphone markets, so manufacturers are shifting capacity to LPDDR3 and other forms of mobile memory and storage.

"DDR4 hasn't been a desire. It's not something customers have been clamoring for," said Mike Howard, senior principal analyst of DRAM and memory at IHS iSuppli.

The final specification for the DDR4 standard was published by JEDEC Solid State Technology Association in September 2012. In addition to power-saving and performance improvements, DDR4 is a highly reliable form of DRAM with more debugging and diagnostic tools to prevent errors, said Scott Schaefer, a representative for JEDEC.

A broad spectrum of DRAM suppliers, system manufacturers, third-party contractors and test equipment companies are involved in the development and testing of DDR4, Schaefer said. He could not speak for when DDR4 would reach the market, saying it was up to JEDEC member companies to announce products.

But analysts said that DDR4 will likely take on volume shipments starting in 2015 or 2016, starting in servers followed by client devices like PCs.

Research firm IC Insights is predicting DDR4 sales volumes to overtake DDR3 in 2016 at the earliest. By the end of this year, the research firm is projecting DDR3 to account for 86 percent of DRAM market share, followed by DDR2 at 8 percent and DDR at 2 percent, with other forms of memory such as PC-133 graphics DRAM and a very small amount of DDR4 accounting for the remaining 4 percent.

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