Component Suppliers Have Indicated That NVIDIA Does Not Appear to Intend to Ramp Up Its GPU Production Any Time Soon

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Two NVIDIA component suppliers have indicated that they’ve not received any notice from the GPU manufacturer that it is planning to increase production any time soon. According to DigiTimes (via TechPowerUp), Siliconware Precision Industries (SPIL) and King Yuan Electronics (KYEC) who provide Outsourced Semiconductor Assembly and Test (OSAT) services for NVIDIA, have not been given any increased order demands. This news comes as NVIDIA’s latest RTX 40 series card, the GeForce RTX 4070, was just launched a few days ago.

There are multiple theories being suggested as to why this is happening. The GeForce RTX 4070 has launched with an MSRP of $599, and while offering a number of new features and improved performance, it is competing not only with current AMD graphics cards such as the RX 6800 which recently has been seen going for as low as $469 but also the previous GeForce RTX 30 series cards that are still in stock. It is believed that NVIDIA’s strategy is to stay the course with its current production demands in order to clear out the backlog from the previous generation.

Meanwhile, the newly launched RTX 4070 is mirroring another RTX 40 series launch, the RTX 4080, in that, it too can still be found on the shelves (at least in the U.S.), and at MSRP. Both cards have received criticism for their respective price vs performance comparisons. One other theory, which may require a tin hat or deeper insight into stocks, is that NVIDIA is more focused on its enterprise GPUs such as the A100 which multiple entities have been buying up in droves for AI training and chatbots causing the company’s stocks to continue to skyrocket despite purported lackluster sales in the consumer arena. Regardless of the reason, NVIDIA is still expected to be releasing more cards in the RTX 40 series in the coming months.

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Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

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