Samsung has officially announced the discontinuation of its older-generation LPDDR4 and LPDDR4X memory production. Instead, the company is redirecting its resources towards the development of newer-generation memory technologies, which offer higher profit margins, in order to cater to the burgeoning demands of AI data centers. Samsung has indicated that the current memory supply falls short of meeting the prevailing demand. It is anticipated that supply constraints will escalate further by 2027, thereby driving up memory prices and yielding substantial profits for storage chip and module manufacturers. Despite Samsung's proactive measures to recalibrate production capacity and embark on expansion plans, the outcomes have been marginal. Furthermore, the extensive strike undertaken by Samsung employees is projected to curtail DRAM and NAND production capacity by a minimum of 4%, thereby exacerbating the already strained memory supply scenario.
