Graphics cards are still crashing! AMD/ Nvidia massive order cuts: cut to q1 next year
On July 1, China's Taiwan Digitimes reported that TSMC has received orders from AMD, Nvidia and Apple, three major customers, to cut orders, including a large number of advanced process orders to delay until the first quarter of next year.
(Photo: Sino_Market, Twitter user)
At present, both the consumer electronics market and commercial grade display chip demand is not small over the same period. Earlier, Nvidia announced that it was changing its strategy to focus more on the game player experience in the future. It's not hard to see how the collapse of mining cards has affected the normal market for game graphics cards, and Nvidia has ended its days of "lying back and making money." According to the sources, Nvidia has submitted requests to TSMC for order delays as late as the first quarter of 2023, with a large number of orders coming from consumer graphics cards. The pressure is on TSMC as it is also revealed that AMD, another big chip maker, will cut about 20,000 7nm and 6nm wafers between the fourth quarter of this year and the first quarter of next year.
(Image: NVIDIA Gefore)
At its shareholders' meeting early last month, TSMC announced plans to build five new fabs this year, including those in China and Japan, covering 2nm, 3nm, 7nm and 28nm processes. But now, the three customers have cut/delayed orders one after another, and the new plant in Kaohsiung, which was supposed to start operation this year, has been basically confirmed to be delayed until the end of 2024, and will not start producing chips until 2025. With the combination of delayed shipments and weakened orders, game graphics cards could see a surge, continuing the vicious cycle of supply and demand imbalance.
(Image: NVIDIA Gefore)
In fact, graphics card crash is not entirely from the currency circle turmoil. Earlier, market analyst Jon Peddie said that with new technologies that no longer use computer-generated Ethereum tokens and crypto demand diminishing, the crypto market will not show signs of warming up anytime soon. This means that the price chaos in the game graphics market caused by the mad buying of mining cards has long been improved. The lack of innovation in consumer electronics, as well as the lack of recent blockbuster games that demand graphics, has made consumers reluctant to upgrade, which is one of the reasons why Nvidia has shifted its strategy back to gaming.