The memory shortage has reached unusual territory with legacy DDR2 and DDR3 components seeing dramatic price increases. According to Trend Force, hardware firms are redesigning products to use older memory types as buyers seek reliable supply allocations amid scarcity of mainstream DRAM. DDR4 and DDR5 modules are already difficult to find and expensive, forcing some manufacturers to downgrade specifications.

The AI boom pushed chipmakers toward HBM and server DRAM production, creating shortages in consumer memory markets. Prices for DDR4 and DDR5 modules have risen significantly, with some PC costs increasing by double digits. Companies are now adopting lower capacity configurations or turning to older memory generations to maintain supply chains, causing shortages to ripple through even legacy DRAM products.

Winbond is winding down DDR2 production to focus on higher-margin DDR3, DDR4, and LPDDR4 products, while ESMT maximizes DDR2 output to fill the gap. The market intelligence firm estimates DDR2 contract prices will jump approximately 55 to 60 percent in Q2 2026, followed by another 35 to 40 percent increase in Q3.

Major suppliers plan gradual capacity expansion. SK hynix aims to double wafer output over five years, and Micron expects meaningful new capacity at its Virginia plant in 2027-2028. This supply crunch reveals how AI infrastructure demands are reshaping the entire memory ecosystem, affecting everything from cutting-edge GPUs to legacy embedded systems.