Friday, July 1st 2022
NVIDIA to Cut Down TSMC 5nm Orders with the Crypto Gravy Train Derailed, AMD Could Benefit
NVIDIA is reportedly looking to reduce orders for 5 nm wafers from TSMC as it anticipates a significant drop in demand from both gamers and crypto-currency miners. Miners are flooding the market with used GeForce RTX 30-series graphics cards, which gamers are all too happy to buy, affecting NVIDIA's sales to both segments of the market. Before the crypto-currency crash of Q1-2022, NVIDIA had projected good sales of its next-generation GeForce GPUs, and prospectively placed orders for a large allocation of 5 nm wafers from TSMC. The company had switched back over to TSMC from Samsung, which makes 8 nm GPUs from the RTX 30-series.
With NVIDIA changing its mind on 5 nm orders, it is at the mercy of TSMC, which has made those allocations (and now faces a loss). It's incumbent on NVIDIA to find a replacement customer for the 5 nm volumes it wants to back out from. Chiakokhua (aka Retired Engineer), interpreted a DigiTimes article originally written in Chinese, which says that NVIDIA has made pre-payments to TSMC for its 5 nm allocation, and now wants to withdraw from some of it. TSMC is unwilling to budge—it could at best hold off shipments by a quarter to Q1-2023, allowing NVIDIA to get the market to digest inventory of 8 nm GPUs; and NVIDIA is responsible for finding replacement customers for the cancelled allocation.
The same article paints a different picture for AMD: the company has reduced orders for 7 nm and 6 nm nodes; but its 5 nm orders are unaffected. AMD makes not its its next-generation RDNA3 GPUs on 5 nm, but also its next-generation "Zen 4" CPU chiplets. Any drop in demand for GPU silicon would be internally adjusted by increasing "Zen 4" chiplet orders. AMD's growth as a processor manufacturer is no longer bottlenecked by technology-leadership, but by volumes. The company could jump at the prospect of higher 5 nm allocation, as it would enable it to increase output of "Zen 4" processors to meet rising demand of high-margin server processors with its upcoming EPYC "Genoa" and "Bergamo" processors.
Source:
Chiakokhua (Twitter)
With NVIDIA changing its mind on 5 nm orders, it is at the mercy of TSMC, which has made those allocations (and now faces a loss). It's incumbent on NVIDIA to find a replacement customer for the 5 nm volumes it wants to back out from. Chiakokhua (aka Retired Engineer), interpreted a DigiTimes article originally written in Chinese, which says that NVIDIA has made pre-payments to TSMC for its 5 nm allocation, and now wants to withdraw from some of it. TSMC is unwilling to budge—it could at best hold off shipments by a quarter to Q1-2023, allowing NVIDIA to get the market to digest inventory of 8 nm GPUs; and NVIDIA is responsible for finding replacement customers for the cancelled allocation.
85 Comments on NVIDIA to Cut Down TSMC 5nm Orders with the Crypto Gravy Train Derailed, AMD Could Benefit
6500XT is a low cost GPU for the low end market. AMD doesn't really cares to flood the market with that GPU. And that GPU is a mobile one, that AMD put on the PCB of a desktop product. This could be another indication that AMD's plans in the mobile market hit a wall or something. Ryzen 6000 should have been everywhere thanks to that RDNA2 iGPU, but where are those laptops?
So maybe AMD only really needs 6nm capacity for the I/O dies.
www.marketwatch.com/story/nvidia-has-a-pascal-problem-and-its-stock-is-plunging-after-earnings-2018-11-15?yptr=yahoo
We are also looking at an upcoming gen that is not receiving the best press. The biggest item is power consumption. And not in a good way. I think Nvidia is starting to see those margins shrink more than their die sizes, so this is damage control - the only way to sell meagre upgrades is creating artificial scarcity.. And meagre is what it is when the perf/dollar is barely moving gen to gen. Especially while power budgets explode.
Nvidia is officially 'for the miner' this and next gen. After all, they are now providing miners with more resale value.
RTX is fantastic innit...
You're a ****ing idiot then, unless you been following the news about dodgy broken cards.
And why on earth would you help out the people that bought GPUs by the pallets to make an easy buck. Let them choke on them.
You know what I came for
Too late to turn back
This is the payback" from song Payback
All the nv bullshit of CMP for miners and GeForce for gamers and saying they care about gamers now choke themselves. Certainly no pity or mercy at all. All nv are suffering now are well deserved.