The past couple years haven’t been the best for PC gamers, namely due to the hardware crisis we are going through thanks to the ongoing COVID-19 pandemic, which has resulted in lower availability and astronomical price rises for graphics cards and processors. Although 2022 was starting to look a little more optimistic, it turns out that prices could increase even more this year.
TSMC is one of the biggest Semiconductor Manufacturing Companies out there, and is used by some of the biggest names in the tech industry. Following record profits as well as continual shortages, they have apparently informed customers that they will soon be raising their prices for chips by around 20%.
Both Nvidia and AMD rely on TSMC for manufacturing. Nvidia uses it for graphics cards, and AMD uses it for both GPUs and CPUs. Both companies currently use the 7nm node from TSMC, and for their next-gen tech will be using the smaller and even more expensive 5nm node.
The difference there is that Nvidia has already paid upfront to secure their chips for the RTX 40 series, which could explain why they’re so hopeful for graphics card shortages to improve in the second half of 2022. So it is possible that Nvidia won’t be affected too much by the price rise, but that doesn’t mean to not expect more expensive GPUs in the next generation.
Although this could turn out well for Intel and their customers, as they mostly manufacture their chips in-house. So we might not see as drastic a price rise for their 13th gen Intel Core processors. But Intel is also looking to compete with their new Intel Arc Alchemist graphics cards, and we have yet to hear official pricing for those GPUs.
So Intel could sneakily price their GPUs along with projected prices for Nvidia and AMD later this year, in order to score a higher profit margin due to lower manufacturing costs. But they also could undercut the competition by selling cheaper cards than Nvidia or even AMD, knowing those two would not be able to lower their prices without losing out on their profit margins.
Either way, it’s pretty terrible news for PC gamers who were looking forward to the hardware crisis easing up over the next couple years and returning to normal. Unfortunately, it looks like we may never go back to ‘normal’ GPU prices like we saw pre-pandemic. Sure, graphics cards will start to sell at MSRP again, but that MSRP will be marginally higher than a few years ago anyway.
Then again, other manufacturers (as well as TSMC) have been spending a lot of money on increasing production capacity. There’s no stopping AMD or even Nvidia from switching over to another manufacturer in the future if they want. I guess like much of the news surrounding these situations, we’ll just have to wait and see.
What do you think? Will we see a major price hike for next-gen GPUs and CPUs? Do you think Intel will undercut competition or will their prices be fairly similar? And could you ever see Nvidia or AMD moving to another manufacturer? Let us know your thoughts!