wccftech - High-Performance CPUs & GPUs From Intel, AMD, NVIDIA To See Up To 20% Price Hike In 2022
“2022 is starting off with really bad news for enthusiasts and high-performance CPUs & GPUs users as the big three, AMD, Intel, NVIDIA is planning to increase the prices of their chips by up to 20%.
In the latest report by DigiTimes, it is reported that due to several external factors, such as the continued high-shipping and Foundry costs, the big three which include AMD, Intel, & NVIDIA, are planning to raise the prices of their chips by up to 20%. And these not only include prices of GPUs but CPUs are going to be affected by these too.
The report states that TSMC has already increased the quotations for its existing 7nm and 5nm process technologies which will go on to power several next-gen GPUs and CPUs such as AMD Ryzen 7000, AMD Ryzen 6000H/U, NVIDIA GeForce RTX 40 & Intel's ARC Alchemist GPUs. While Intel will be relying on TSMC's 6nm process which is an extension of the N7 process node, the price hike will be similar.
AMD will increase its quotations for all 7nm and 5nm chips produced at TSMC, as TSMC has increased its quotations for mature and advanced process nodes by 10-20% starting this year.
It is reported that NVIDIA has also paid TSMC upfront payments for long-term orders for the 5nm RTX 40 GPU series starting this year and may pass on some of the high manufacturing costs to customers.
The price increase is going to offset these variables and external factors that have affected the existing chip production process. And while there's a possibility that availability will get better for several of these product lines by the end of 2022, there's no confirmation if prices will get any better and that's the main concern for many right now.
We have already reported on how NVIDIA will be spending several Billions of dollars to acquire TSMC's 5nm wafer supply but that also means that consumers will have to pay more to get hands-on these state-of-the-art chips that utilize their technology. AMD already raised the prices of their Zen 3 products based on TSMC's 7nm node and their Ryzen 7000 based on TSMC's 5nm node may end up being even more costly.
Intel's ARC GPUs and AMD's RDNA 2 refreshed GPUs are the only consumer products that we know of making use of TSMC's 6nm process node so they might have better supply, but prices are a big question. Based on the retailer-specific prices for the Radeon RX 6500 XT graphics card, it looks like 6nm is in pretty much affected too by all of these chip supply issues despite AMD promising a better supply and pricing for the upcoming card.”
My thoughts: We knew this was coming months ago when TSMC raised their production prices. Coupled with the increased manufacturing and logistics costs for all the tech industries, this should not be a surprise to anyone.