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Hot!NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers

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rjohnson11
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2022/07/01 01:16:17 (permalink)
https://videocardz.com/newz/nvidia-reportedly-wants-to-cut-tsmc-orders-for-next-gen-rtx-40-gpus-5nm-wafers-amid-lower-demand
 
[font="'helvetica neue', arial, helvetica, sans-serif; font-size: 22px"]TSMC customers want to lower their silicon orders
The consumer electronics market is slowing down rapidly. The interest in new TVs, mobile phones and PCS and has declined as quickly as pandemic has ‘ended’ and inflation struck global markets.
Both AMD and NVIDIA are revising their TSMC orders, reports DigiTimes. The website citing their industry sources claims that Apple, AMD and NVIDIA all wish to change their orders. AMD reportedly wants to lower its 7/6nm wafer orders while NVIDIA is now facing a problem of over saturated GPU market and possibly lower demand for next-gen GPUs.
NVIDIA now has a large stock of GeForce RTX 30 graphics cards for sale, yet the company is now willing to lower the price just yet. This is despite the second-hand market now being inflated by mining cards which are no longer profitable to use and keep. There are simply too many cards now, which paints a grim outlook for RTX 40 demand.
The most interesting details from DigiTimes article have been translated by RetiredEngineer:
 

NVIDIA is one of the companies that made prepayments to TSMC for their 5nm wafers. Unfortunately for NVIDIA, TSMC is not willing to make concessions. At best NVIDIA can count on wafer shipment delay for up to two quarters, but it’s NVIDIA’s problem to find customers for TSMC vacated production capacity, which may be very hard given how demand has dropped for the whole sector. NVIDIA is now expected to use 5nm (TSMC N4) technology for its upcoming GeForce RTX 40 series codenamed Ada Lovelace. The company is already using this process node for its Hopper (H100) data-center architecture. The market situation has been reflected in lower stock price for AMD and NVIDIA. Both stocks have dropped by almost 50% in just 6 months time.
 
In my opinion NVIDIA should not revise their orders. I believe there will be high interest for next gen GPUs. 

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    Sajin
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/01 01:27:15 (permalink)
    rjohnson11
    In my opinion NVIDIA should not revise their orders. I believe there will be high interest for next gen GPUs. 

    If the price is right, but we all know nvidia will raise the price on their gpu’s yet again.

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    rjohnson11
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/01 01:29:28 (permalink)
    Sajin
    rjohnson11
    In my opinion NVIDIA should not revise their orders. I believe there will be high interest for next gen GPUs. 

    If the price is right, but we all know nvidia will raise the price on their gpu’s yet again.

    I'm interested to see how good AMD GPUs are this time around and if they can compete with NVIDIA. 

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    yaymz
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/01 09:35:43 (permalink)
    Wise man once say:
    "wait till Black Friday for some killer deals on 40 series GPUs!". 
     
    Excess (new) 30 series will be put on absolute fire sale. 
     
    Honestly buy a whole new system for yourself on Black Friday... start saving some money now.  We may see some once in a life-time opportunities.  Supplier's/MFGs will eventually throttle down, but Purchase orders and line time has already been reserved (industry wide, not just GPUs).
     
     
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    ObscureEmpyre
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/01 12:32:38 (permalink)
    I’m willing to bet if Nvidia lowers the MSRP for the RTX 4000 series, they’ll sell enough. Maybe not enough to meet their revenue or profit projections based on the pandemic and crypto boom, but that’s capitalism. You win some; you lose some. Nvidia just lost some.


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    Delirious
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/01 21:01:55 (permalink)
    If elon musk is cutting his workforce, then the writing is on the wall. Brace for a recession

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    Miguell
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/02 08:30:00 (permalink)
    Delirious
    If elon musk is cutting his workforce, then the writing is on the wall. Brace for a recession




    that's why there are credit cards.. and banks..
     
    here where i live? forget it..
    even drowned in debt people want the latest iPhone pro max or Samsung Galaxy ultra cellphone way over 1000 euros and they can't even afford their 50 euros of net/TV monthly bills to be able to pay other things like FOOD or pay rent! and i know cause i work on the client support line! its ridiculous! in 36 months they will be finishing paying for the thing.. completely obsolete!
     
    recession ? yes!
     
    lost of purchase power? yes! and aggravating!
     
    banks ready rubbing they hands?  definitely!
    they know their credits is the only thing that makes it able for people to buy things wayyy over they're already tight budgets
     
    already said this years black Friday will be special... IF scalpers don't screw this up!
    post edited by Miguell - 2022/07/02 08:32:03

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    #7
    Hoggle
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/02 11:12:40 (permalink)
    yaymz
    Wise man once say:
    "wait till Black Friday for some killer deals on 40 series GPUs!". 
     
    Excess (new) 30 series will be put on absolute fire sale. 
     
    Honestly buy a whole new system for yourself on Black Friday... start saving some money now.  We may see some once in a life-time opportunities.  Supplier's/MFGs will eventually throttle down, but Purchase orders and line time has already been reserved (industry wide, not just GPUs).
     
     




    People always say "Wait for black friday" but the reality is electronics never have really great deals since the cost to manufacture the products and ship them is expensive. It's unlikely they could lower the price more than $50 without a manufacture rebate and make a profit at a retail store. The best electronics deals on black friday are always on electronics made to be cheap and bare bones.
     
    On this though it looks like they won't cut shipment total so maybe NVIDIA will reduce price to closer to production costs. Increasing price will result in less interest and possibly unsold product.

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    kougar
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/02 22:16:44 (permalink)
    ObscureEmpyre
    I’m willing to bet if Nvidia lowers the MSRP for the RTX 4000 series, they’ll sell enough. Maybe not enough to meet their revenue or profit projections based on the pandemic and crypto boom, but that’s capitalism. You win some; you lose some. Nvidia just lost some.



    Aye, it doesn't take a degree in economics to see that. NVIDIA could sell all the Ada Lovelace cards they could fab if they price them aggressively. NVIDIA would have to be unbelievably stupid to axe 5nm order capacity before the thing even launches. The US auto industry made that mistake already and spent two years paying for it. There won't be any shortage of customers wanting access to TSMC's 5nm capacity.


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    rjohnson11
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 01:00:04 (permalink)
    Looks like NVIDIA moved their production completely to TSMC. Supply shortages have eased so overall demand is lower. Let's hope that NVIDIA doesn't lower production enough to cause a next gen GPU shortage. 

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    kram36
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 01:21:42 (permalink)
    I would love another GPU shortage.
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    Hoggle
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 02:20:10 (permalink)
    kougar
    ObscureEmpyre
    I’m willing to bet if Nvidia lowers the MSRP for the RTX 4000 series, they’ll sell enough. Maybe not enough to meet their revenue or profit projections based on the pandemic and crypto boom, but that’s capitalism. You win some; you lose some. Nvidia just lost some.



    Aye, it doesn't take a degree in economics to see that. NVIDIA could sell all the Ada Lovelace cards they could fab if they price them aggressively. NVIDIA would have to be unbelievably stupid to axe 5nm order capacity before the thing even launches. The US auto industry made that mistake already and spent two years paying for it. There won't be any shortage of customers wanting access to TSMC's 5nm capacity.




    It depends on what NVIDIA knows about how well the benchmarks are and sometimes with a new card it has new features that will make it better in the future but might not really show themselves at launch. It's totally possible that a GPU could come out that benchmarks on on modern titles just as fast as current cards but can run games that will be released in the future much faster. This is kind of how it was with the 2080 when it launched and we didn't really have a ray traced title yet to really show off why it's a lot faster than a 1080Ti was.

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    bobmitch
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 07:10:14 (permalink)
    kram36
    I would love another GPU shortage.




    I am wondering that by cutting production...if they aren't "artificially" creating the possibility of one

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    lastsamurairick
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 08:41:50 (permalink)
    ah I just going sit back and relax got my GPU already is not 4000 series but my 3070 is good enough for me. Let the confusion begin it's rampage

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    ObscureEmpyre
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 10:15:03 (permalink)
    lastsamurairick
    ah I just going sit back and relax got my GPU already is not 4000 series but my 3070 is good enough for me. Let the confusion begin it's rampage

    I’m with ya. I’ve got a 3080 Ti in all three of my systems, so I’m good for a long while. Of course, I’ll be reading/watching the performance reviews of the 4000 series, but I have no desire to buy any of them. They’d have to break the laws of physics or something for me to want one. My 3080 Ti cards are definitely a long-term investment. I’m slightly annoyed that I paid what I did for them (original EVGA list price) given what they’re going for today, but whatever. I can’t really complain. Bottom line: I’m happy with what I’ve got.


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    Hoggle
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 10:54:14 (permalink)
    One thing that I found interesting about all this is if true it means NVIDIA planned on mining being a big part of the 40XX series and LHR cards would not have been the plan for a lot of the lineup.

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    ObscureEmpyre
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 11:24:34 (permalink)
    Hoggle
    One thing that I found interesting about all this is if true it means NVIDIA planned on mining being a big part of the 40XX series and LHR cards would not have been the plan for a lot of the lineup.

    They did that with Pascal cards (1000 series). It always amazes me when companies rely on a bubble, become highly profitable as a result, but never seem to anticipate the bubble bursting.


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    Miguell
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 17:06:09 (permalink)
    the lust to buy the latest and greatest gaming GPU (no matter the cost) is indeed fading..FAST! ( a very small niche may remain)
     
    people are just fed up with scalpers and inflated prices everywhere.

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    GTXJackBauer
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/03 21:12:03 (permalink)
    Hopefully the past negatives will be huge positives for the consumer end.

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    kougar
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    Re: NVIDIA reportedly wants to cut TSMC orders for next-gen RTX 40 GPUs 5nm wafers 2022/07/04 01:43:22 (permalink)
    bobmitch
     
     
    I am wondering that by cutting production...if they aren't "artificially" creating the possibility of one




    It wouldn't surprise me if they did. Particularly given how awful the A370M performance reviews are shaping up.
     
    But I still think it's unbelievably stupid to gamble on making less product but better margins via artificial bubbles, rather than to just produce as many cards as possible and price them well enough to sell. Fixed costs are fixed, and we know the demand will be strong if it's a good performance increase over Ampere at a competitive price.
     
    The true beneficiary of the 2nd GPU bubble was probably Sony, who sold an untold number of extra PS5's to people that gave up trying to source GPUs and bailed on PC gaming for it. And Sony still can't keep the PS5 in stock two years later, meanwhile EVGA is now having trouble moving product stock. If NVIDIA did reduce 5nm orders (which I think is unlikely) then I hope they get burned for it considering for the past year everyone was saying there wasn't enough TSMC 5nm capacity to go around, which helped drive more bubble sales. 
    post edited by kougar - 2022/07/04 01:46:29


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