Graphics cards are extremely hard to come by these days, and if you do manage to get so lucky and find one in stock, they’re usually overpriced beyond belief. Unfortunately this does not seem to be getting much better, and despite what Nvidia has already said, it looks like the Green Team will continue to struggle throughout Q3 this year.
Previously, Nvidia said that they believed GPU shortages would last until Q2 2021, with the idea that things will start to slowly get better in Q2 before easing up in Q3: “we expect the overall channel inventories, meaning the inventories that are with our AIC partners as well as in our e-tail and retail channels will likely remain lean throughout Q1,” said Collette Kress, Nvidia’s CFO, back in January.
“Our overall capacity has not been able to keep up with that overall strong demand that we have seen. We’ve seen in terms of constraints, constraints really from the overall global surge of compute and the overall capacity, capacity that may be necessary for assembly and test and/or sub trades as well. But again, we remain focused on this and working each day to improve our overall supply situation.”
A bit confusing though is that Nvidia’s quarters actually end at slightly different dates than you’d think, with Q1 finishing at the end of April. That means Q2 runs until July 2021. Either way, based on Nvidia’s comments that means they would expect GPU production to get better in May through to July this year. But a new report suggests that Nvidia will still struggle throughout that period.
However, there is some slightly good news at least - or at least the possibility of good news that is - as it is reported that Samsung’s 8nm production is also struggling. As such, there are rumors Nvidia could be looking towards TSMC to produce more chips for some more RTX 30 graphics cards, since Apple has released some of their grip on TSMC’s production - who had previously grabbed the majority of fabrication from the semiconductor manufacturer.
What that means is that Nvidia could potentially have a lot more GPUs ready for gamers to purchase and I mean actually purchase. Rumors have been floating around about an RTX 3050 or RTX 3050 Ti, and if Nvidia decides to get those GPUs done at TSMC on a smaller silicon, the potential for a lot more graphics cards on the market is certainly there.
Plus, they’ll still be getting Samsung to work on the rest of their chips in that time, so it’s not like Nvidia will be sacrificing one side for the other. Either way, if these reports are true, then get ready for a wealth of new mainstream graphics cards to hit the market, which could potentially drive prices down as scalpers and crypto miners would struggle to buy up all the stock.
What do you think? Is it a good idea for Nvidia to use TSMC for their low-end chip production? Will it help with stock issues more significantly this time if they do so? And how would this affect the crypto mining/scalper market in general? Let us know!