For linear products such as LT, due to the stability in lead time and pricing, the market price is currently quite firm, making it difficult to negotiate. The market inventory level continues to decline. Some power module products, such as LTM4620, are experiencing tight lead times and market price increases. The original manufacturer is in an allocated state, while products with traditionally long lead times like HMC are currently in low demand, with limited market supply, and prices are relatively stable. Due to the long lead times and fewer production lines, the original manufacturer’s willingness to offer discounts is also minimal, so the market remains stable. There is some improvement in demand, focusing on materials such as transceivers and isolators.
The DRAM segment achieved record-high revenue, driven in part by nearly 50% QoQ growth in HBM revenue. Revenue from data centers more than doubled YoY, also setting a quarterly record. End-consumer markets experienced robust sequential growth.
Looking ahead to Q4 FY2025, MICRON projects revenue of $10.7 billion, a 38% YoY increase. This positions the company to potentially achieve record-high full-year revenue in FY2025.
DDR4 has issued formal notices to customers announcing the discontinuation of DDR4/LPDDR4 production, with shipments expected to wind down over the next 2–3 quarters. Earlier this year, reports suggested that the three major DRAM manufacturers—MICRON, SAMSUNG, and SK HYNIX—may cease DDR3 and DDR4 production entirely by the end of 2025.
In April, SAMSUNG already informed PC OEMs that it would halt DDR4 production by year-end. As production cuts and discontinuations take effect, coupled with factors like tariffs, the spot market has experienced ripple effects. DRAM supply constraints are worsening, and spot prices for DDR3 and DDR4 are climbing.
Despite DDR4 entering the latter half of its product lifecycle, it still has significant demand in industrial and consumer applications where performance requirements are modest and small-capacity DDR4 products offer notable stability and compatibility advantages. While major manufacturers are pushing customers toward DDR5, those unable to transition may face short-term premiums for DDR4.
However, transitioning to DDR5 is technically challenging—for example, most current FPGA applications are based on DDR4 and cannot easily shift. Also, DDR5 adoption is limited by manufacturing budgets and incomplete downstream application migration, causing DDR5 demand to lag behind DDR4.
Looking forward, downstream customers are advised to evaluate system compatibility and plan inventory strategies, including early DDR5 migration. FPGA and embedded markets may remain key segments for ongoing DDR4 supply in the medium to long term. Nonetheless, excessive stockpiling is not recommended—despite reduced output, inventories have not yet been depleted, and prices may retreat once panic buying subsides.
ALTERA Cyclone and MAX series are seeing rising spot demand and prices.
XILINX’s 16/20/28nm product lines are reportedly under quota allocations, with extended lead times. Some Kintex7 and Virtex7 models may become China-exclusive.
Geopolitical risks and DDR4 EOL are strengthening DRAM pricing. DDR4 is expected to continue rising through Q3, while DDR5 price gains are narrowingdue to increased domestic production.
DRAM
NAND Flash
HBM
Overall, prices and lead times across most semiconductor categories are expected to remain relatively stable, unless geopolitical tensions escalate significantly. Tariff-related cost increases will likely persist through Q2 and Q3, with OEMs possibly passing costs to end users, which may lead to demand contraction across sectors in the long term.
Although the market has achieved a degree of supply-demand balance, continued supply pressures in strategic areas such as AI compute, smart vehicles, and industrial automation will sustain market volatility in 2025. With memory chips especially heating up, opportunities will persist throughout the year.
