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

[Peter_Brosdahl]

Two NVIDIA component suppliers have said that they've not received any indication 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.

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. 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.

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[Ranulfo]

My money is on a little from column A and a little from column B.

 

[Denpepe]

Their cards are in stock everywhere so why ramp up making more.

 

[MadMummy76]

And I'm not planning to ramp up my upgrade plans.

Their cards are in stock everywhere so why ramp up making more.

That's just a third of the picture. It is in stock because nobody wants them at the current prices, not because they make more than there would be demand for.

They can either not make more GPUs and have what little they do make collect dust on shelves, or they can ramp up production, bring down prices to Earth realm and actually move some product.

 

[Denpepe]

And I'm not planning to ramp up my upgrade plans.


That's just a third of the picture. It is in stock because nobody wants them at the current prices, not because they make more than there would be demand for.

They can either not make more GPUs and have what little they do make collect dust on shelves, or they can ramp up production, bring down prices to Earth realm and actually move some product.

I doubt prices will move much untill 3xxx series are sold out, they are not going to flood the market with 2 series that don't sell.

 

[Grimlakin]

We will see adjustments when the 5 series roles out from nvidia or a direct competitor from amd of Intel hits the market.

 

[MadMummy76]

We will see adjustments when the 5 series roles out from nvidia or a direct competitor from amd of Intel hits the market.

Unfortunately we have seen that AMD is happy to price their GPUs based on Nvidia, they will not undercut them by much. It's unspoken collusion.

As for next gen drropping lowering the prices of current gen, that never happened. They'd rather hide or destroy old stock than sell it on the cheap cutting into the next gen sales. I mean if last gen has better value those who are not looking for the best just a good upgrade would never buy the latest.