NVIDIA Wants to Cut Wafer Orders for GeForce RTX 40 Series Due to Weaker Market Demand, TSMC Says No: Report

Tsing

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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.

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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.
 
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.
 
Endgame said:
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.
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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.
 
Brian_B said:
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.
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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.
 
Brian_B said:
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.
Click to expand...
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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