Say Goodbye to the Idea of Chinese RAM Being Cheap; 32GB DDR5 Modules Now Retail for Over $500 as Local Prices Catch Up Globally

Well, the idea that Chinese memory modules are cheaper has been outdated, as a recent DDR5 listing by a domestic vendor shows that RAM prices have almost leveled out worldwide.

KingBank’s DDR5 Modules Are Now Retailing For Prices Similar to Western Alternatives, As Shortages Leave No Other Way

We did see the narrative of Chinese memory emerging as a ‘saviour’ for gamers pop up a few weeks ago, and it was mainly driven by the fact that manufacturers like CXMT weren’t as mainstream compared to the ‘Big 3’ memory suppliers. However, it didn’t take much time for the Chinese RAM retail market to catch up to global prices, as according to a recent listing by KingBank, a 32 GB DDR5 memory is now going for 3629 yuan, which is around $530 on the Chinese retail platform JD.com, which is a similar price tag to what Western alternatives are offering for the same memory configuration.

For those unaware, KingBank is known for integrating CXMT’s DDR5 modules into its consumer offerings. The brand was also highlighted by the mainstream media when the ‘Chinese memory’ narrative first kicked in. The company also has a 64 GB DDR5-6000 configuration retailing for more than $1,000, implying that gamers were looking towards CXMT as a cheaper option; well, that isn’t the case anymore. And we discussed the specific reasons why Chinese memory manufacturers won’t be a viable replacement in a previous report, which you can check here.

Right now, memory suppliers have every reason to cater to enterprise demand, and they cannot afford to allocate their ‘precious’ capacity to consumer segments, where the ROI is lower than what AI customers are willing to pay. We recently discussed how CXMT plans to shift a significant chunk of its DRAM capacity to HBM3, which is a clear indicator of why even the region’s DRAM producers won’t take their chances by siding with consumer businesses.

The only worthwhile effort CXMT might make towards the client segment is by signing LTAs with the likes of HP, Dell, and ASUS, and this would only provide PC manufacturers with DRAM capacity, without much value added in terms of the contract prices, because the supply gap is so immense that every memory supplier is rushing to capitalize on the AI frenzy.

News Source: ITHome

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