Samsung Halts LPDDR4 Production, Forcing Smartphone Makers Onto Pricier LPDDR5 Amid Global Memory Crunch

Samsung Closes the Door on LPDDR4

Samsung Electronics has stopped accepting new orders for LPDDR4 mobile memory, effectively forcing smartphone and chipset customers to migrate to its more profitable LPDDR5 and LPDDR5X products. As the world's largest memory manufacturer, Samsung's decision removes a critical source of supply for the older standard at a moment when the industry can least absorb the shock. The move was first reported by South Korean outlet The Elec and detailed across the trade press over the past 48 hours.

A Calculated Shift Up the Stack

The LPDDR4 cutoff is the latest step in Samsung's drawn-out exit from legacy memory nodes. The company originally planned to wind down DDR4 production by late 2025, then reversed course after spot prices for DDR4 surged past DDR5 levels - a rare price inversion driven by tight supply. Samsung extended server-class DDR4 lines through December 2026 under non-cancellable, non-returnable contracts with key enterprise customers. Mobile LPDDR4, however, has not received the same reprieve. Chipset designers like Qualcomm and MediaTek will need to redesign reference platforms around LPDDR5, and even Samsung's own Galaxy A-series budget phones, some of which still rely on LPDDR4X, are expected to migrate in upcoming revisions.

Memory Crisis Reshapes the Smartphone Market

The production halt lands as the broader memory shortage tightens its grip on the smartphone industry. Counterpoint Research recorded a 6% year-over-year drop in global smartphone shipments in the first quarter of 2026, while IDC measured a 4.1% decline to 289.7 million units, snapping a 10-quarter growth streak. Mobile LPDDR4 and LPDDR5 prices in the second quarter of 2026 are expected to be nearly three times higher than third-quarter 2025 levels. The entry-level segment, devices priced under $200, faces the steepest squeeze, with IDC warning that emerging-market consumers face a bigger challenge than anything seen during the pandemic.

No Quick Relief in Sight

The root cause is structural: wafer capacity is being diverted to higher-margin HBM and enterprise DRAM for AI data centres, compounded by years of underinvestment after the post-pandemic correction. Counterpoint forecasts a 12.4% contraction in full-year 2026 smartphone shipments - the steepest on record - with volumes falling below 1.1 billion units for the first time since 2013. IDC describes the situation not as a temporary disruption but as a structural shift that will define the device market narrative well into 2027.