Image: NVIDIA

DigiTimes has shared a report that can reveal AMD has reduced some of its wafer orders with TSMC due to an “abrupt drop-off” in demand for PC hardware. Eager to join them, allegedly, is NVIDIA, which is supposedly trying to cut orders for 5-nanometer wafers destined for the GeForce RTX 40 Series, according to a translation of DigiTimes’ article by RetiredEngineer that notes the “enormous channel inventory” in the current market, not to mention “used GPUs dumped into the market by miners.” TSMC has reportedly denied NVIDIA’s request and will only agree to delaying initial shipments. Recent rumors suggest that NVIDIA will launch its next flagship desktop graphics card for gamers, the GeForce RTX 4090, in the month of October, while the GeForce RTX 4080 and GeForce RTX 4070 will follow in November and December, respectively. The GeForce RTX 4090 is expected to feature a TDP of over 400 watts.

[…] NVIDIA has paid a huge amount of prepayment to obtain more process capacity below 5nm since Samsung’s 8nm return to TSMC. However, the decline of the mining boom came quickly and quickly, and the terminal channel and graphics card manufacturers were full of stocks. The large number of second-hand cards released to the market, and the less-than-expected demand for gaming PCs, forced NVIDIA to adjust its plans and indicated to TSMC that it would delay and reduce the first wave of orders.

NVIDIA wants to cut orders, but TSMC is unwilling to make concessions. At present, the adoption of the 5nm next-generation RTX 40 series can delay the purchase of goods for one season, or even to the first quarter of 2023, but NVIDIA is responsible for finding other vacated production capacity. Customers take over to make up, minimizing the impact.

Source: DigiTimes (via RetiredEngineer)

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12 comments

  1. Well, the big part of this is obviously the impact of mining.

    A much smaller but still significant part is just that the economies all over are still reeling. I think it's still largely the after effects of the pandemic, it will take years for everything to finally stabilize following that large of an interruption to everything, and we are still seeing ripples of that hit everything.

    That said, if the fabs really were so overcommitted / undercapacity as they were claiming, a reduction in orders shouldn't really affect output, just help to reduce lead times. Even with the reduction there's still so many orders out there no one is idling production, and if/when things pick back up, the orders can go back on the books.

    The interesting part:

    Apple: We want to lower our order by 10%
    TSMC: No problem.

    AMD: We want to lower our order by 20k units
    TSMC: No problem.

    nVidia: We want to lower our order because we have too many used products in the market.
    TSMC: Nope.
  2. nVidia: We want to lower our order because we have too many used products in the market.
    Just imagine the spin Jensen will put on that in the next board meeting in regards to the next forecast. What's he got cooking for next year, why leftovers of course!
  3. Nvidia shouldn’t have issues selling the 4k series… presuming they

    1) have a notable improvement in performance similar to or better than the difference between the 900 series and 1000 series.

    Or

    2) are willing to drop unit margins to early 2000 levels and can makeup the difference in volume.
  4. Nvidia shouldn’t have issues selling the 4k series… presuming they

    1) have a notable improvement in performance similar to or better than the difference between the 900 series and 1000 series.

    Or

    2) are willing to drop unit margins to early 2000 levels and can makeup the difference in volume.
    Well if they have a glut of chips they save to fulfill orders for we can hope they drop margins to turn those chips into cash.
  5. My guess:

    They sit on them to create an artificial shortage and keep prices/margins high until the glut of grey market cards starts to abide.

    Because that’s what they did last time.
  6. My guess:

    They sit on them to create an artificial shortage and keep prices/margins high until the glut of grey market cards starts to abide.

    Because that’s what they did last time.
    Sadly you are probably correct. Though in this case it would be Nvidia CHOOSING the shady approach as opposed to the profit approach. It is arguably accurate to say both are profitable to the same degree. And without a Mining market they will stagnate by comparison.

    For instance today right now my system is pulling around 100 FPS in AAA titles with everything turned on OTHER than Ray Traced reflections.

    The reason I would go to a newer Nvidia card is the additional functions... rendering, video backgrounds, hardware accelerated AI functions and testing. Audio cleanup... others. These are things that the current AMD card's just don't do that I want to tinker with.
  7. My guess:

    They sit on them to create an artificial shortage and keep prices/margins high until the glut of grey market cards starts to abide.

    Because that’s what they did last time.
    That's why I didn't have any regrets bumping up to the 3090 Ti a while ago. I feel the same thing that happened with the 3000 series cards will happen with the 4000 series. They made too much money last go around to make it easy on the consumer this time. I hope I'm wrong though.

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