You may have noticed that it has been quite difficult to get your hands on an Nvidia GPU in recent years, mainly because graphics card manufacturers have struggled to keep up with demand. Now that cryptocurrencies have lost much of their value and second-hand components are flooding the market, Nvidia must reduce the number of 5nm chips it orders from TSMC ahead of the RTX 4000 series to avoid the reverse issue.
While the recent cryptocurrency roller coaster crash is the main reason for Nvidia’s change of heart, it’s not the only factor. Interest rates and the cost of living have skyrocketed in many parts of the world, and DigiTimes notes (via VideoCardz) that interest in shared technology is waning as a result. It’s not just about gaming PCs, but also about TVs, mobile phones and other devices.
In fact, Nvidia is not alone in its decision to review its request. AMD reportedly demanded a 20,000 reduction in its 7/6nm wafer order after Ryzen CPU revenue was slightly affected by Intel’s 12th generation and a 10% drop in prices. iPhone shipments prompted Apple to follow suit.
Nvidia is not easy
Unfortunately, the green team can’t get rid of their ties that easily. Nvidia already prepaid for its distribution after Samsung left TSMC and will only get its money back if it finds new customers to meet its obligations. Instead, TSMC has offered to delay shipments until the first quarter of next year.
Regardless of the talks, Nvidia, TSMC and every other tech company will likely have to accept lower earnings forecasts for the rest of the year.
Source : PC Gamesn
