Early in November, after Intel released its 12th Generation Core ‘Alder Lake’ processors for enthusiasts, it quickly became clear that DDR5 memory modules were in short supply, causing prices to skyrocket. With the advent of the mainstream 12th-Gen Intel processors, such shortages were expected to grow, but supply is already increasing and costs are reducing.
Prices of dual-channel 32GB DDR5 memory kits reached as high as $1,300 late last year due to a shortage of power management ICs (PMICs) and voltage regulation modules (VRMs) for DDR5 memory sticks. 32GB DDR5 kits are now more affordable, which is wonderful news for enthusiasts.
When you look at the table and graphs, one thing that stands out is that the modules are sold by Amazon third-party vendors. This is a solid indicator that DDR5 memory kits are still scarce, which is why companies like Corsair sell DDR5 SDRAM memory sticks directly and through some wholesalers (who then ship the products to various resellers). Nonetheless, as availability improves, even dealers have been obliged to decrease their prices.
While Amazon sells at prices that are near to what the manufacturer recommends, dealer prices change based on supply and demand. This is why, in late December, several of these retailers charged exorbitant prices for uncommon high-performance modules. Now that the availability of DRAM has improved, costs have fallen anywhere from 26% to 80% per kit in just a few weeks.
Since Intel began shipping standard 12th Generation Core CPUs with DDR5 capability, memory manufacturers like Micron, Samsung, and SK Hynix will certainly ramp up volume production of their DDR5 ICs, lowering prices. What remains to be seen is whether manufacturers of PMIC and VRM components can keep up with demand, as these chips are required by every DDR5 module. Companies like Renesas should be tempted to boost their IC shipments because demand for these components is pretty predictable.
The supply of DDR5 memory modules is improving in general, but we’re still not out of the woods. It’s unclear when DDR5 will be priced similarly to DDR4, although a 32GB kit is no longer $1000.
also read:
