Micron's Fab 6 Ramp-Up of LPDDR4/DDR4 Unlikely to Ease Industry-Wide DDR4 Shortage, Says TrendForce

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Micron Technology has announced the commencement of production for LPDDR4 and DDR4 memory using its 1α nm process at its Fab 6 facility in Virginia, USA. The output is primarily designated for key sectors including automotive, defense and aerospace, industrial, networking, and medical applications. According to the latest memory industry research from TrendForce, this expansion at Fab 6 reflects an internal reallocation of Micron's production capacity rather than a renewed push to supply consumer-grade DDR4. The analysis indicates that Micron will shift the production focus at Fab 6 towards LPDDR4 and DDR4, with a greater emphasis on the former. The overall wafer input at this facility is projected to grow to 1.5 times its Q2 2026 level by Q4 2027. Production using the 1α nm node is expected to begin mass production by the end of 2026 and scale up to four times its initial input by 2027. Concurrently, output at the OMT facility for 1α nm products will be gradually reduced quarter by quarter, with no overall expansion planned for DDR4 and LPDDR4 production. The equipment for the new DDR4/LPDDR4 production lines at Fab 6 is sourced mainly from the OMT facility, with additional equipment purchased to meet process upgrade requirements. Following the transfer of production lines from the OMT site to Fab 6, TrendForce anticipates that Micron's DDR4 output will account for approximately 7% of its total DRAM production in 2026, with this proportion decreasing year by year thereafter. From an industry-wide perspective, considering sustained strong demand from sectors like networking, TrendForce assesses that DDR4 will continue to face shortages in 2026, with prices maintaining an upward trajectory. Looking ahead, Micron's global capacity allocation is expected to demonstrate a clear division of labor: the OMT facility will concentrate on producing mainstream memory specifications such as DDR5 and HBM, while Fab 6 will focus on products with relatively smaller demand volumes and longer lifecycles.

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