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[Bernoulli]

Ready for next-gen GPUs price hike?


The AI industry is evolving rapidly, which has prompted a massive need for relevant resources. TSMC (Taiwan Semiconductor Manufacturing Company) is deemed responsible for most of the industry's semiconductor needs, and customers like Apple, Qualcomm, NVIDIA, and AMD depend upon the Taiwan giant for their respective chip products. Due to this, it is now being reported that IC design companies are opting for considerable price increases since TSMC's supply and demand chain is now unbalanced, given that their high-end 3nm process has witnessed gigantic demand.

TSMC's 3nm Supply Runs Short Amid Huge AI Demand: NVIDIA, Apple, AMD, Qualcomm Consider Raising Chip Prices

NVIDIA, Apple, AMD & Qualcomm are now opting for price hikes for their in-demand AI hardware as TSMC's 3nm supply becomes more scarce.

wccftech.com

 

[DenchDeckard]

Ready for next-gen GPUs price hike?


The AI industry is evolving rapidly, which has prompted a massive need for relevant resources. TSMC (Taiwan Semiconductor Manufacturing Company) is deemed responsible for most of the industry's semiconductor needs, and customers like Apple, Qualcomm, NVIDIA, and AMD depend upon the Taiwan giant for their respective chip products. Due to this, it is now being reported that IC design companies are opting for considerable price increases since TSMC's supply and demand chain is now unbalanced, given that their high-end 3nm process has witnessed gigantic demand.

TSMC's 3nm Supply Runs Short Amid Huge AI Demand: NVIDIA, Apple, AMD, Qualcomm Consider Raising Chip Prices

NVIDIA, Apple, AMD & Qualcomm are now opting for price hikes for their in-demand AI hardware as TSMC's 3nm supply becomes more scarce.

wccftech.com

All according to plan!

 

[SportsFan581]

Yikes, I guess we will have to see how the prices move.

 

[Magic Carpet]

Come on China, you flooded the world with cheap electric cars and solar panels where are the chips?

 

[zeroluck]

Next gen Nvidia is on 4nm.

 

[winjer]

What a dystopian gaming market.
First mining. Now AI.
Gamers just can't get a break...

 

[NeverYouMind]

Come on China, you flooded the world with cheap electric cars and solar panels where are the chips?

China has not taken back Taiwan just yet...

 

[GreatnessRD]

China has not taken back Taiwan just yet...

Let us pray they don't, too.

And far as the topic goes, Next-Gen GPU were gonna go up anyway. Folks have shown these companies they're willingly to pay almost anything to get these products. Jacket Man Jensen could slap an Nvidia sticker on a trashcan and charge 2k. Somebody is going to buy it.*

*Oh wait, he did. It's called the RTX 3050 and RTX 4060, lulz

 

[Bernoulli]

Come on China, you flooded the world with cheap electric cars and solar panels where are the chips?

China would be leading chip manufacturing if they didn't get banned from using EUV made by ASML

They managed to get 7nm with the limitations somehow

 

[Bojji]

What a dystopian gaming market.
First mining. Now AI.
Gamers just can't get a break...

You also gave big electricity price hikes (at least in Europe), amazing time to be alive...

 

[StreetsofBeige]

Got late in he game, but making bank on NVDA, SMCI and HPE.

I was going to buy ORCL too, but played safe buying dividend paying BCE which is down 1%. If I had bought ORCL instead at $120 I'd be up 15% in a week. Oh well, cant get em all.

 

[Gaiff]

Lol, of course, they wanna raise prices.

 

[recursive]

Come on China, you flooded the world with cheap electric cars and solar panels where are the chips?

Yea but all that stuff is junk. I don't want my video card frying after a month of moderate use. Or the Spyware they embed.

 

[Esppiral]

Another excuse to milk consumers to death, nice!

 

[Magic Carpet]

Yea but all that stuff is junk. I don't want my video card frying after a month of moderate use. Or the Spyware they embed.

You buy the 12pack and chuck the fried cards in the trash.
200 bucks for a 4090 class card that blows up ever 2 years is not bad.

 

[mckmas8808]

What a dystopian gaming market.
First mining. Now AI.
Gamers just can't get a break...

And yet I keep hearing video game podcasters tell me that consoles will be going away and everyone will be gaming on the cloud and on PCs. REALLY?! With prices going up like this?

 

[Physiognomonics]

All according to plan!

I mean it's not TSMC's fault if others foundries are bad, is it? It's like people complaining SpaceX has almost a "monopoly" du to them being too good.

 

[The Pleasure]

Pc Master race stays paying

 

[DeepEnigma]

All according to plan!

Almost like "price fixing"

I mean "supply and demand"

Create the problem by being the leaders in AI chip production, provide the monetary solution.

 

[winjer]

And yet I keep hearing video game podcasters tell me that consoles will be going away and everyone will be gaming on the cloud and on PCs. REALLY?! With prices going up like this?

That is true.
But console chips are also made by TSMC.

 

[danklord]

Just a tremendous stock to own

 

[Topher]

Pc Master race stays paying

Consoles ain't immune my man

 

[cinnamonandgravy]

What a dystopian gaming market.
First mining. Now AI.
Gamers just can't get a break...

$NVDA helps

 

[The Pleasure]

Consoles ain't immune my man

Like a vaccine, consoles aren't immune, but they have some protection against it.

 

[Bojji]

Like a vaccine, consoles aren't immune, but they have some protection against it.

599$ Xbox is will launch soon.

 

[t_wilson01]

As if Nvidia needs an excuse to increase prices.

 

[mckmas8808]

But console chips are also made by TSMC.

True, but due to the amount sold the increase of the price isn't going to be as much. It's all about scale. Maybe the PS6 will be $600 at launch, but I'm expecting the Nvidia 6090 to be $2000 a launch.

 

[nemiroff]

I have money - But I also have principles. There's a limit on how many leather jackets I'm willing to sponsor.

 

[SmokedMeat]

Outside of the "4090" crowd, good luck. The vast majority aren't going to pay crazy high prices and will play with what they already have.

 

[winjer]

True, but due to the amount sold the increase of the price isn't going to be as much. It's all about scale. Maybe the PS6 will be $600 at launch, but I'm expecting the Nvidia 6090 to be $2000 a launch.

The xx90 GPUs are more expensive just for some random reason.
They have a much bigger die, which reduces the amount of dies per wafer and yields.
They also have more vram, which is also faster.
And they also have a beefier and more expensive power delivery and PCB.

 

[ReBurn]

It's interesting how they rarely consider increasing capacity in response to high demand.

 

[MikeM]

Maybe thats why AMD decided to skip low volume, high end GPUs for upcoming RDNA4.

I wonder what this means to margins for Nvidia and AMD. ?

 

[StreetsofBeige]

It's interesting how they rarely consider increasing capacity in response to high demand.

Easier said then done. Although who knows how easy it is to increase chip making machines.

Easiest way to increase production is add more shifts (ie. midnight shift assuming there's people to hire to do middle of the night jobs).

If all shifts are maxed out then adding more machines can take a while. I remember my last company was thinking about adding capacity (they were already maxed out with 24H production), and the supply chain guys said it could take 10 months to add more capital machinery, test it, and hire/train more people to run it. And this wasnt techie precision products. Just your typical crap you see at grocery stores and Walmart selling for $10.

 

[MikeM]

The xx90 GPUs are more expensive just for some random reason.
They have a much bigger die, which reduces the amount of dies per wafer and yields.
They also have more vram, which is also faster.
And they also have a beefier and more expensive power delivery and PCB.

You also need to factor in the increase in margins that Nvidia will want. Almost 80% margins per last quarter and will only continue to increase as daddy Jensen can command whatever price he wants and the market will pay it.

 

[ReBurn]

Easier said then done. Although who knows how easy it is to increase chip making machines.

Easiest way to increase production is add more shifts (ie. midnight shift assuming there's people to hire to do middle of the night jobs).

If all shifts are maxed out then adding more machines can take a while. I remember my last company was thinking about adding capacity (they were already maxed out with 24H production), and the supply chain guys said it could take 10 months to add more capital machinery, test it, and hire/train more people to run it).

I get what you're saying, but there's definitely been enough time in the last 4 years since chip shortages started impacting literally everything to expand capacity and help prevent this kind of thing. It's not like this is a brand new problem.

 

[StreetsofBeige]

I get what you're saying, but there's definitely been enough time in the last 4 years since chip shortages started impacting literally everything to expand capacity and help prevent this kind of thing. It's not like this is a brand new problem.

Yup.

They can also play the F'em and let's max out the pricing strategy with gimped supply and customers fighting for it.

 

[Sgt.Asher]

Intel continues to suck and can't get a plant up.

 

[Roxkis_ii]

Now this is an aera where we need some competition. The fact the world is dependent on one company for advance chips is a disaster waiting to happen.

 

[The Cockatrice]

Thats okay, we dont actually have games that demand next-gen gpus so we can skip the next generation of gpus until next-gen consoles release.

 

[James Sawyer Ford]

I hope this AI bubble pops, it seems like smoke and mirrors to me in the short term

 

[The Pleasure]

599$ Xbox is will launch soon.

I did that because I hate you. I raised the price of the xbox single handedly. It was I, Dio!

 

[Klosshufvud]

The people who jumped on the 4nm wagon will be eating good for half a decade on. The land of diminishing returns is hitting hard.

 

[SHA]

I put my (ARM)or on, show you how strong I am
I put my (ARM)or on, I'll show you that I am

 

[Korranator]

Don't care. AAA sucks now. I mostly play older titles or indes. Nothing out there is really pushing a need for anything beyond a 4080

 

[Dorfdad]

China has not taken back Taiwan just yet...

if they ever do the world is FLUCKED! Hope this never happens

 

[markusho3k]

And yet I keep hearing video game podcasters tell me that consoles will be going away and everyone will be gaming on the cloud and on PCs. REALLY?! With prices going up like this?

I find that a little contradictory, bc if gaming in the near future is right in the CLOUD, why the need to buy a power machine then?. You can have just a little device with high speed internet connection hooked to a display and you save a good thousands. The platform providers will have to spend millions in order to provide their services. not us. lol.

 

[nush]

I get what you're saying, but there's definitely been enough time in the last 4 years since chip shortages started impacting literally everything to expand capacity and help prevent this kind of thing. It's not like this is a brand new problem.

In manufacturing "Just make more" isn't realistic. There's usually a gating process or item that can't be overcome. That's all we can get and that's how long it takes, basically.

Say just add more machines, well they cost millions so how long will it be until a factory sees ROI on that. If they "just make more" then the prices stay low and that will be a long time.

 

[Wildebeest]

What a surprise. Nobody could have predicted this.

 

[ReBurn]

In manufacturing "Just make more" isn't realistic. There's usually a gating process or item that can't be overcome. That's all we can get and that's how long it takes, basically.

Say just add more machines, well they cost millions so how long will it be until a factory sees ROI on that. If they "just make more" then the prices stay low and that will be a long time.

I didn't suggest they "just do" anything. This has been a trend for four years. Seems like they can take some of the money from inflated prices that are being charged due to their control of supply and take care of the capacity issues that limit supply. With the billions in profit taking that's been happening since covid I'm positive they won't have issues with ROI if they build more fabs. I'm not going to cry for them because their machines that earn them billions cost millions.

 

[nush]

I didn't suggest they "just do" anything. This has been a trend for four years. Seems like they can take some of the money from inflated prices that are being charged due to their control of supply and take care of the capacity issues that limit supply. With the billions in profit taking that's been happening since covid I'm positive they won't have issues with ROI if they build more fabs. I'm not going to cry for them because their machines that earn them billions cost millions.

OK, long answer.

https://www.jabil.com/blog/global-chip-shortages.html#:~:text=What's%20Behind%20the%20Ongoing%20Global,continues%20to%20be%20extremely%20disrupted.