Last month I reported regarding the Global chip shortage issue which is going to last till 2022 and as a result, NVIDIA and AMD GPU stocks are also going to be affected. Now we have a report to further back up this claim that this whole GPU availability and supply situation is going to get worse.
According to a press report from Digitimes (coming via Sweclockers), and despite Nvidia’s attempt to improve this situation, the RTX 30-series graphics card shortages are going to last till Q3 of this year. So we can expect this trend to continue until the next year as well, i.e. 2022.
So it seems unlikely that the RTX 30 series GPU shortages will ease even during the third quarter of this year.
“Digitime’s report is in line with the recent SweClockers talks with industry insiders, which flag that there are increasing indications that the shortage will remain throughout 2021.” -via Sweclockers.
But Digitimes is also reporting that Samsung’s 8nm manufacturing yields for Nvidia’s Ampere GPUs are poor, with the Korean manufacturer having trouble getting good numbers of working chips from each wafer.
“In several places, however, there have been problems with Samsung, whose 8-nanometer technology is used for Nvidia’s latest generation of graphics circuits. This is reinforced by Digitimes, which claims that Samsung has difficulty producing enough working circuits (yield).”
Back in January 2021, Nvidia’s CFO Collette Kress said, “Supply does remain tight at this time. We expect the overall channel inventories, meaning the inventories that are with our AIC partners as well as in our e-tail and retail channels will likely remain lean throughout Q1.” via Seeking Alpha.
However, if this report from Digitimes is accurate, then this is certainly disappointing news for gamers, since the coming Q2/Q3 period is also going to witness the same trend.
As Collette Kress explained, “Our overall capacity has not been able to keep up with that overall strong demand that we have seen. We’ve seen in terms of constraints, constraints really from the overall global surge of compute and the overall capacity, capacity that may be necessary for assembly and test and/or sub trades as well.
But again, we remain focused on this and working each day to improve our overall supply situation.”
According to several industry analysts, GPU stock is going to suffer through until 2022, and because the demand for chips now exceeds supply by about 30%, it will take almost three or four quarters for the supply to catch up with the demand.
This means that chip shortages are going to last till 2022, at the very least. Your chances of buying an AMD, Intel, or Nvidia gaming GPU might get affected by this market trend, and we already know the current demand and supply condition, and it has been almost nigh impossible to buy a gaming GPU/CPU or a console since last year or so.
Since last year’s pandemic disrupted the world’s economy, the demand for semiconductors is generally at an all-time high. Furthermore, these chips are getting more complex as well as harder to produce.
According to Financial analyst Christopher Rolland of the Susquehanna International Group, chip shortages could get even worse as we head into spring, after countries cease lockdowns and economies restart.
Maribel Lopez, principal analyst at Lopez Research, explains that the current semiconductor industry is facing a “perfect storm” of demand and supply, which is unlikely to be resolved anytime soon.
We also know by now that Scalping has become one of the most frustrating things to happen lately, which in turn has affected and disrupted the whole PC hardware and the console gaming market as well.
Scalpers had the opportunity to buy a product for the sole purpose of just making a profit out of it, and more specifically for selling it at a much higher price than the initial MSRP. On top of that, the astronomical rise in the price of cryptocurrency has started another “Mining craze” resulting in severe GPU shortages and price hikes lately. Sadly, this whole situation is not going to improve anytime soon.
It has been nigh impossible to buy any gaming GPU or CPU at least at the minimum MSRP rate set by companies. The demand continues to outstrip supply thus leading to a global shortage of these gaming cards. This is going to get worse further down the line, which certainly is bad news for gamers.
To sum this up, the current situation of demand outweighing supply is predicted to last for another three or four quarters, and then followed by a further one or two quarters “before” inventories can reach normal levels.
So it’ll be sometime in 2022 before the whole global industry gets back to normal, hopefully. But I digress.
Stay tuned for more tech news!