Former Samsung Executive Says China Could Crash DDR5 Prices With Massive DRAM Expansion

China is preparing a major move in the DRAM memory market that could completely change DDR5 pricing in less than a year.

This was stated by Kye-hyun Kyung, former head of Samsung’s semiconductor division, who said that the expansion of production capacity in China could reverse the current 414% increase in DDR5 memory prices.

Over the past months, demand for memory chips has risen sharply because of the growth of artificial intelligence and the need for high-bandwidth memory solutions such as HBM. This shift of resources toward more advanced memory has caused a shortage of DDR5, pushing prices much higher.

China Could Crash DDR5 Prices With Huge DRAM Production Expansion

In countries like Germany, costs have increased more than four times since mid-2025, affecting both consumers and hardware manufacturers.

Companies such as ChangXin Memory Technologies (CXMT) and Jiahe Jinwei are leading a major expansion in DDR5 memory production. It is estimated that by the second half of 2027, China could reach production levels of 6 million wafers per month, creating an oversupply large enough to push prices down worldwide.

According to Kyung, this increase in DRAM memory production could end the current price spike in less than a year.

The former executive also warned that if major companies do not receive enough return from their investments in AI infrastructure, growth in that sector could slow down. He also said that Korea needs to strengthen its position in the “fabless” chip market in order to compete with the United States and China in an increasingly difficult market.

Kyung’s warning points to a possible positive change in the memory market. If China successfully continues its expansion, the current rise in DDR5 prices could fall quickly.