Standard of Excellence: Speed vs. Quality in Customer Service
Knocking Down the Bone Pile: Revamp Your Components with BGA Reballing
Global Sourcing Spotlight: Balancing Speed and Flexibility Without Sacrificing Control
Tight DRAM Supply to Boost DDR5 Contract Prices—Profitability in 2026 Expected to Surpass HBM3e
October 29, 2025 | TrendForceEstimated reading time: 1 minute
TrendForce’s latest investigations show that server DRAM contract prices are strengthening in 4Q25, driven by ongoing data center expansion among global CSPs. This momentum is lifting overall DRAM pricing. Although final contract pricing for the quarter is still being negotiated, suppliers are showing a greater willingness to raise quotes as CSPs increase order volumes.
TrendForce has accordingly revised its 4Q25 outlook for conventional DRAM pricing upward, from an earlier forecast of 8–13% growth to 18–23%, with a strong likelihood of further upward revision.
Looking ahead to 2026, global server shipments are expected to grow by around 4% annually. Meanwhile, CSPs are rapidly upgrading to HPC platforms to support massive AI models, driving up memory content per server. This will push overall DRAM bit demand beyond prior expectations and extend the structural supply shortage.
Thanks to server demand remaining strong, DDR5 contract prices are expected to maintain an upward trajectory throughout 2026, especially in the first half of the year. In contrast, given the increasingly competitive landscape among the three major suppliers for HBM3e—and the fact that buyers are holding healthy inventory levels—HBM contract prices are expected to shift into year-over-year decline.
TrendForce observes that as of 2Q25, HBM3e still commanded a price premium more than four times that of DDR5, providing much stronger profitability for suppliers. However, as DDR5 prices continue to rise, the gap between the two will narrow significantly in 2026. DDR5 profitability is projected to surpass that of HBM3e starting in the first quarter of next year.
Since HBM3e and DDR5 compete for the same production capacity, TrendForce expects that once this profitability shift occurs, suppliers may allocate more resources toward server DDR5 to secure earnings. Concurrently, with HBM3e pricing stabilizing and demand still solid, suppliers may also attempt to raise ASPs to maintain balanced profitability across their product portfolios.
Moving forward, the capacity allocation and pricing strategies between DDR5 and HBM among leading suppliers will become key variables shaping the next phase of the memory market.
Share on:
Testimonial
"Your magazines are a great platform for people to exchange knowledge. Thank you for the work that you do."
Simon Khesin - Schmoll MaschinenSuggested Items
DRAM Prices to Continue Rising in 4Q25, Server Demand Surges Ahead While Legacy Process Products See Steeper Increases
09/24/2025 | TrendForceTrendForce’s latest investigations reveal that the three major DRAM suppliers continue to allocate advanced process capacity primarily to high-end server DRAM and HBM, crowding out capacity for PC, mobile, and consumer applications.
Tightening of LPDDR4X Supply Drives Up Prices; Smartphone Brands to Accelerate Adoption of LPDDR5X
07/17/2025 | TrendForceTrendForce’s latest investigations reveal that major Korean and U.S. memory suppliers are expected to significantly reduce or even cease production of LPDDR4X in 2025 and 2026.
Passive Buyer Strategies Drive DRAM Contract Prices Down Across the Board in 1Q25
12/30/2024 | TrendForceTrendForce’s latest investigations reveal that the DRAM market is expected to face downward pricing pressure in 1Q25 as seasonal weakness aligns with sluggish consumer demand for products like smartphones
HBM3e Production Surge Expected to Make Up 35% of Advanced Process Wafer Input by End of 2024
05/20/2024 | TrendForceTrendForce reports that the three largest DRAM suppliers are increasing wafer input for advanced processes. Following a rise in memory contract prices, companies have boosted their capital investments, with capacity expansion focusing on the second half of this year.
Micron First to Ship Critical Memory for AI Data Centers
05/01/2024 | MicronMicron Technology, Inc. announced it is leading the industry by validating and shipping its high-capacity monolithic 32Gb DRAM die-based 128GB DDR5 RDIMM memory in speeds up to 5,600 MT/s on all leading server platforms.