This is exactly why. Making dGPUs for AMD just eat away at their output at TSMC and they earn more from CPUs and APUs.
GPU development and production is still important for AMD, but they don't need to have high-end offerings for what they do; iGPUs, APUs (including Console APUs) etc. It is simply not important for them. They officially said this, when they said 7900XTX was 4080 counter and not a 4090 counter. They left the entuisiast market.
High-end dGPU is a niche market for AMD and probably always will be. Name one high-end AMD offering that sold well in recent years?
AMD have always sold mostly low to mid-end GPUs. Research and development is very costly and high-end GPUs makes little sense for AMD. This is why they want to go MCM so they can scale their offerings much easier, without ramping up costs like crazy for high-end.
I bet AMDs goal with Radeon 8000 is just to use 5nm still, while using 3nm for CPUs as fast as possible (when Apple is done with it) - Zen 5. Cheap GPUs with good enough raster perf is what is needed to drive AMDs GPU marketshare forward again. Along with FSR and AFMF improvements.
AMD can't afford to go 3nm too soon. Too costly. Nvidia will be able to. Going from 4/5nm to 3nm for Nvidia will also mean price increases on their own. Probably around 50% more per wafer.
However Nvidia rules the gaming GPU market while not even focussing on the market. They have full focus on AI and Enterprise and this won't change for years. They even scaled back gaming GPU production to make AI/Enterprise chips. I think we won't see a flood of 4000 SUPER cards on release because of this.
TSMC increased production costs alot over the last years + Inflation. This is not only Nvidia increasing prices. Look at AMD prices today as well. They are generally not cheap, mostly because TSMC wants their cut. TSMC knows AMD relies 100% on TSMC. Remember how poorly Ryzan was prior to TSMC? GloFo 12nm was trash compared to even Intel 14nm.
In a few years, Intel is probably back in the lead with 20A/18A and will be open for business. I don't think TSMC can retain their lead for much longer. Maybe AMD can use Intel for their chips then
But yeah, process improvement + inflation + shipping and higher development and production costs is what is driving up prices. This is true in all markets really. Expect hardware to get more and more expensive, especially in the high-end.
I predict RTX 5090 to be 1999 but I would not be surprised if its 2499. AMD has nothing to counter it. Just like 4090. AMD barely could counter 3090/3090 Ti even tho Nvidia used a cheap and mediocre process node in Samsung 8nm thats closer to 10nm TSMC in reality and yet Nvidia still won. Superior architecture is the reason.
AMD probably paid twice as much per 7nm wafer compared to Nvidia using Samsung 8nm, if not more. Nvidia did not need the best node to beat AMD.