It appears as if there has been no rush when it comes to people buying NVIDIA's GeForce RTX 4070 cards, at least not directly from NVIDIA's website, as the company lists no less than 19 different models in stock. It should be noted that NVIDIA links to third party websites, but most of the cards are available through at least one of the third parties. Out of those 19 cards, nine are sold at the MSRP of US$599.99, but the remaining 10 cards are sold above the MSRP, by varying amounts. What seems odd is that some companies have both dual and triple fan cards retailing for the MSRP, but with some dual fan OC cards going for more than MSRP from the same company.

The cards priced higher than the MSRP range from US$609.99 to US$699.99, making the more pricey cards seemingly bad value for money, as the highest clock speed listed is only a mere 115 MHz higher than NVIDIA's own RTX 4070 FE card. As seen in TPU's testing, none of the cards seem to have much of an overclocking headroom anyhow, so spending a $100 extra here doesn't seem to be worth it for the small gains in performance and could be easily gained by manually overclocking a cheaper card.

According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 16.3% year over year in the fourth quarter of 2022 (4Q22) to $24.1 billion. Spending on cloud infrastructure continues to outgrow the non-cloud segment although the latter had strong growth in 4Q22 as well, increasing 9.4% year over year to $18.7 billion. For the full year, cloud infrastructure grew 19.4% to $87.7 billion, while non-cloud grew 13.6% to $66.7 billion. The market continues to benefit from high demand, large backlogs, rising prices, and an improving infrastructure supply chain.

NVIDIA's H100 accelerator is one of the most powerful solutions for powering AI workloads. And, of course, every company and government wants to use it to power its AI workload. However, in countries like China, shipment of US-made goods is challenging. With export regulations in place, NVIDIA had to get creative and make a specific version of its H100 GPU for the Chinese market, labeled the H800 model. Late last year, NVIDIA also created a China-specific version of the A100 model called A800, with the only difference being the chip-to-chip interconnect bandwidth being dropped from 600 GB/s to 400 GB/s.

This year's H800 SKU also features similar restrictions, and the company appears to have made similar sacrifices for shipping its chips to China. From the 600 GB/s bandwidth of the regular H100 PCIe model, the H800 is gutted to only 300 GB/s of bi-directional chip-to-chip interconnect bandwidth speed. While we have no data if the CUDA or Tensor core count has been adjusted, the sacrifice of bandwidth to comply with export regulations will have consequences. As the communication speed is reduced, training large models will increase the latency and slow the workload compared to the regular H100 chip. This is due to the massive data size that needs to travel from one chip to another. According to Reuters, an NVIDIA spokesperson declined to discuss other differences, stating that "our 800 series products are fully compliant with export control regulations."

It was only Monday this week that ASUS announced the official launch of the ROG Swift OLED PG27AQDM, but now retailers have started to put the display up for pre-order and it looks like for once, ASUS hasn't priced its products higher than the competition. In the US, it appears that the PG27AQDM will retail for US$999, which is the same price that LG is asking for its equivalent Ultragear OLED 27GR95QE-B. ASUS does claim to have higher typical brightness at 450 cd/m² vs a mere 200 cd/m² for the LG, yet somehow also claim to have half the power consumption.

A swift jump over the pond and the PG27AQDM looks a little less exciting, with it coming in at £1,098.95 in the UK and €1,299.99 in Germany and as much as 14,990 kr in Sweden, which puts all three nations at well over US$1,100 excluding any local VAT. That makes LG's Ultragear OLED the far more attractive option in Europe, as it's cheaper in all three countries by the equivalent of around US$100. For those still interested, the bad news is that the display won't arrive in retail until sometime in mid or end of April, depending on the country you live in.

According to TrendForce's latest survey of the global foundry market, electronics brands began adjusting their inventories in 2Q22, but foundries were unable to rapidly adapt to this development because they reside in the more upper portion of the supply chain. Moreover, revising procurement quantities of long-term foundry contracts takes time as well. Hence, only some tier-2 and -3 foundries were able to immediately respond to the changes in their clients' demand. Also, among them, 8-inch wafer foundries made a more pronounced reduction in their capacity utilization rates. As for the remaining foundries, the downward corrections that they made to their capacity utilization rates did not become noticeable until 4Q22. Hence, in 4Q22, the quarterly total revenue of the global top 10 foundries registered a QoQ decline for the first time after 13 consecutive quarters of positive growth. The quarterly total revenue of the top 10 foundries came to US$33,530 million, reflecting a drop of 4.7% from 3Q22. Moving into 1Q23, TrendForce projects that the quarterly total revenue of the top 10 will show an even steeper drop on account of seasonality and the uncertain macroeconomic situation.

NVIDIA's presence in high-performance computing has steadily increased, with various workloads benefiting from the company's AI and HPC accelerator GPUs. One of the important markets for the company is China, and export regulations are about to complicate NVIDIA's business dealing with the country. NVIDIA's major partners in the Asia Pacific region are Inspur and Huawei, which make servers powered by A100 and H100 GPU solutions. Amid the latest Biden Administration complications, the US is considering limiting more export of US-designed goods to Chinese entities. Back in 2019, the US blacklisted Huawei and restricted the sales of the latest GPU hardware to the company. Last week, the Biden Administration also blacklisted Inspur, the world's third-largest server maker.

In the Morgan Stanley conference, NVIDIA's Chief Financial Officer Colette Cress noted that: "Inspur is a partner for us, when we indicate a partner, they are helping us stand up computing for the end customers. As we work forward, we will probably be working with other partners, for them to stand-up compute within the Asia-Pac region or even other parts of the world. But again, our most important focus is focusing on the law and making sure that we follow export controls very closely. So in this case, we will look in terms of other partners to help us." This indicates that NVIDIA will lose millions of dollars in revenue due to the inability to sell its GPUs to partners like Inspur. As the company stated, complying with the export regulations is the most crucial focus.

According to TrendForce's latest survey of the server market, many cloud service providers (CSPs) have begun large-scale investments in the kinds of equipment that support artificial intelligence (AI) technologies. This development is in response to the emergence of new applications such as self-driving cars, artificial intelligence of things (AIoT), and edge computing since 2018. TrendForce estimates that in 2022, AI servers that are equipped with general-purpose GPUs (GPGPUs) accounted for almost 1% of annual global server shipments. Moving into 2023, shipments of AI servers are projected to grow by 8% YoY thanks to ChatBot and similar applications generating demand across AI-related fields. Furthermore, shipments of AI servers are forecasted to increase at a CAGR of 10.8% from 2022 to 2026.

Looking back at 2H22, as server OEMs slowed down the momentum of their product shipments, Chinese server buyers also held a conservative outlook on future demand and focused on inventory reduction. Thus, the flow of orders for enterprise SSDs remained sluggish. However, NAND Flash suppliers had to step up shipments of enterprise SSDs during 2H22 because the demand for storage components equipped in notebook (laptop) computers and smartphones had undergone very large downward corrections. Compared with other categories of NAND Flash products, enterprise SSDs represented the only significant source of bit consumption. Ultimately, due to the imbalance between supply and demand, the QoQ decline in prices of enterprise SSDs widened to 25% for 4Q22. This price plunge, in turn, caused the quarterly total revenue from enterprise SSDs to drop by 27.4% QoQ to around US$3.79 billion. TrendForce projects that the NAND Flash industry will again post a QoQ decline in the revenue from this product category for 1Q23.

According to TrendForce's research, global DRAM revenue fell by 32.5% QoQ to US$12, 281 million for 4Q22. The QoQ decline for 4Q22 is larger than the QoQ decline of 28.8% for 3Q22 and comes close to the QoQ decline of 36% for the final quarter of 2008, when the global economy was in the midst of a major financial crisis. The main cause of the steep revenue drop in 4Q22 was the plummeting overall ASP. DRAM suppliers experienced a rapid accumulation of inventory in 3Q22 due to a freeze in buyers' demand. Subsequently, suppliers were much more energetic in price negotiations for 4Q22 contracts as they were struggling for market share. Among the major categories of DRAM products, server DRAM suffered the sharpest price drop in 4Q22. Contract prices of DDR4 and DDR5 server DRAM products registered QoQ drops of 23~28% and 30~35% respectively.

The four major North American cloud service providers (CSPs) have made cuts to their server procurement quantities for this year because of economic headwinds and high inflation. Turning to server OEMs such as Dell and HPE, they are observed to have scaled back the production of server motherboards at their ODM partners. Given these developments, TrendForce now projects that global server shipments will grow by just 1.31% YoY to 14.43 million units for 2023. This latest figure is a downward correction from the earlier estimation. The revisions that server OEMs have made to their outlooks on shipments shows that the demand for end products has become much weaker than expected. They also highlight factors such as buyers of enterprise servers imposing a stricter control of their budgets and server OEMs' inventory corrections.

Back in December, Micron CEO Sanjay Mehrotra announced that the company would be laying off around 10 percent of its staff and according to the Idaho Statesman, Micron will start at its Boise, Idaho fab. This is despite the company investing US$15 billion in a new leading-edge fab there. That said, it doesn't look like Boise will see any huge cuts in staff, as Micron hasn't issued a WARN notice, which is required when a company is planning on laying off more than 500 people within a 30-day period.

Micron issued a statement earlier this week, saying that its layoffs are a combination of "voluntary attrition, workforce reductions and reduced external hiring," which tends to mean that third party contractors will bear the brunt of the layoffs. Micron is also said to be cutting executive salaries, while also suspending bonuses for employees across the board. Further cost reductions include a halted share buyback program and a reduced production output, the latter due to lower demand. Micron has some 49,000 employees globally, with some 6,000 located in Idaho. The company expects to have completed its job cuts by the end of this month.

Dell, the global PC conglomerate, is reportedly cutting the number of its employees. The alleged move is a direct response to the economic downturn caused by declining demand for PCs, which is Dell's primary source of revenue. According to Bloomberg Intelligence, Dell is laying off about 5% of its global workforce, representing 6,650 employees from its offices. As the source notes, Dell is going under re-evaluation of its operations, and the employee headcount reduction is the affected area that will benefit the company an estimated 700 million to one billion US Dollars, as analysts predict.

IDC notes that shipments of Dell PCs have experienced the most significant decline of 37% in Q4 of 2022, compared to the same period in 2021. And given a considerable downturn, Dell's 55% of revenue from PCs is poorly affected. The company is now joining others in big tech in performing layoffs to keep profits afloat.

Antec Inc., leading provider of high-performance computer components and accessories for the gaming, PC upgrade and Do-It-Yourself market, broadens its Gold series with three models offering 650 W, 750 W or 850 W. The 80 PLUS GOLD rating and modular cabling make the Neo Eco Gold Modular a great and affordable choice to Antec's range of industry-leading power supplies. They are now commercially available from 109 € (suggested retail price including VAT).

The brand-new NeoECO Gold Modular series was born ready for the best DIY-PC experience, and it also serves exceptional performance and outstanding stability. Featuring 100% full modular design and 80 PLUS Gold certification, the NeoECO Gold Modular series keeps the PC hardware installation convenient and clean. It provides highly efficient power to your system and reduces your electricity bills.

According to Bloomberg, Japan and the Netherlands are getting ready to join the US in limiting access to advanced semiconductor manufacturing equipment for China. The three nations are currently in talks—that might end as soon as today—over how they can impose joint limits on what kind of equipment and tools can be exported to China. Apparently there will be no official announcement if a deal is struck, instead the restrictions will simply be implemented as required.

Bloomberg states that the Netherlands will expand export restrictions that ASML is already under, which according to the publication means stricter export rules around DEUV machines, which are used in cutting edge semiconductor nodes. Japan is said to implement similar export restrictions for Nikon as well as Tokyo Electron, with the US already having implemented restrictions for Applied Materials. The export restriction deal is in part being done to appease US equipment makers, who have complained that their international competitors haven't been under the same export restrictions when it comes to China, as they have. The question is if the export restrictions will hinder China in the long run, or if the nation will simply push ahead and develop its own, competing semiconductor manufacturing tools.

Update Jan 28th: Japan and the Netherlands reached an agreement with the US on Friday and the two countries are said to be making individual announcements with regards to their individual agreements with the US.

According to a report from Bloomberg, Western Digital and Kioxia are holding new talks about a potential merger of both companies' flash production businesses. The merger appears to be quite complex, as not only does it involve Western Digital spinning off its flash production business unit, which is then said to be merged with Kioxia, into what will be a publicly traded company in the US, but there will also be a second listing in Japan for the company.

Considering that Kioxia came out of Toshiba's DRAM and NAND flash manufacturing business, in which Western Digital was a partner until Toshiba divested its business into Kioxia. This caused quite some tension between the two companies, but Western Digital and Kioxia kept producing NAND flash in the shared facilities. The report by Bloomberg suggests that a management team from Western Digital will be running the combined company, which could potentially lead to future issues between the US and Japanese sides of the company. Time will tell if a merger will actually take place or not, as the two companies failed to come to an agreement in 2021, but it's possible that something has changed since then. Back in 2021, the merger was valued at US$20 billion plus.

Alongside its facilities in Hillsboro, Oregon, Intel was meant to build a state of the art, $700 million R&D centre, but it appears that the company has decided to slam the brakes on that project, as part of its cost saving measures. The "mega lab" as it has also been referred to, will most likely not get built at all, despite the comparably small cost in relation to building a semiconductor fab, but $700 million saved is still going to make Intel look good in front of its shareholders. In total, Intel is said to be looking at cutting US$3 billion in spending for 2023 and cancelling the construction of the R&D facility contributes almost a quarter of that sum.

The "mega lab" was supposed to cover 18,580 square metres of floor space, largely dedicated towards data centre R&D projects. According to Intel, those projects will still go ahead, just at other facilities, according to a statement sent to Oregon Live. Intel is apparently also scrapping plans for a much smaller, US$200 million R&D facility in Israel, while potentially also pushing back its plans for new fabs in Europe. The latter might come down to what kind of subsidies Intel can get from the German government and the EU.

IonQ, Inc. (NYSE: IONQ), an industry leader in quantum computing, today announced plans to open the first known dedicated quantum computing manufacturing facility in the U.S., located in the suburbs of Seattle, Washington. The new facility will house IonQ's growing R&D and manufacturing teams, as they develop systems to meet continued customer demand. With public support from U.S. Senator Patty Murray (D-WA) - an early proponent of the CHIPS and Science Act - and Congresswoman Suzan DelBene, US representative from Washington's 1st congressional district,today's announcement is part of IonQ's broader intent to invest $1 billion through expansion in the Pacific Northwest over the next 10 years.

"IonQ making the decision to open the first ever quantum computing manufacturing facility in the country right here in Bothell is a very big deal—and it's great news for Washington state," said Senator Murray. "Opening this facility will absolutely help ensure Washington state continues to be a leader in innovation and cutting-edge technologies—but it also means jobs that will be an investment in our families and their futures. These are the kinds of investments that happen when we pass legislation like the CHIPS and Science Act to invest in American manufacturing and build the economy of the future right here at home."

TrendForce's recent analysis of the foundry market reveals that demand continues to slide for all types of mature and advanced nodes. The major IC design houses have cut wafer input for 1Q23 and will likely scale back further for 2Q23. Currently, foundries are expected to maintain a lower-than-ideal level of capacity utilization rate in the first two quarters of this year. Some nodes could experience a steeper demand drop in 2Q23 as there are still no signs of a significant rebound in wafer orders. Looking ahead to the second half of this year, orders will likely pick up for some components that underwent an inventory correction at an earlier time. However, the state of the global economy will remain the largest variable that affect demand, and the recovery of individual foundries' capacity utilization rates will not occur as quickly as expected. Taking these factors into account, TrendForce currently forecasts that global foundry revenue will drop by around 4% YoY for 2023. The projected decline for 2023 is more severe when compared with the one that was recorded for 2019.

Due to the various major events that affected the global economy and politics, the overall demand for consumer electronics made a sharp downward turn in 2022, and global shipments of notebook (laptop) computers began to fall over the quarters. TrendForce's latest analysis finds that global shipments of notebook computers (from ODMs) reached just around 186 million units for 2022, showing a YoY drop of 24.5%. As for 2023, the outlook on the performance of the notebook computer market remains uncertain at this moment. TrendForce expects the YoY decline to moderate to about 7.8%, but shipments are projected to total only 171 million units.

Because market demand was anemic in 4Q22, promotional activities related to the traditional year-end peak season did not generate a lot of sales momentum. Looking at regional markets, notebook brands (PC OEMs) slashed prices in the US and China, but their sales results still did not meet expectations. This development was mainly attributed to factors such as high inflation suppressing consumers' disposable income. Since the sales results for 4Q22 were lackluster, efforts to get rid of the existing stockpile of whole devices might continue through 2Q23. Furthermore, order placements from channels are going to be much more restrained.

According to multiple reports and sources close to Tom's Hardware, Intel and Microsoft have quietly resumed operations and a basic level of support in Russia. As to comply with sanctions imposed by Europe, the UK, and US, Intel and Microsoft are forbidden to sell any new technology within the state of Russia. This has made Intel and Microsoft block official software downloads. However, Intel has stated that the company is obliged to provide warranty services that are a part of purchasing an Intel product. "Intel continues to comply with all applicable export regulations and sanctions in the countries in which it operates. This includes compliance with the sanctions and export controls against Russia and Belarus issued by the US and allied nations. Access to resources that meet driver update needs, such as the Intel Download Center and Intel Download Support Assistant (IDSA), are part of Intel's warranty obligations," said Intel, adding that "There have been no recent changes to our operations."

These changes are not exactly "recent," as reports close to Tom's Hardware have noted that downloads were resumed towards the end of 2022. Izvestia and CNews reported that users could access the Intel download portal without VPN and IP masking. This required finding a download section through Google/Yandex, as the official Intel Russia website is still not officially reachable by Russian IPs.

Huawei, the Chinese technology giant, has reportedly filed patents that it is developing extreme ultraviolet (EUV) scanners for use in the manufacturing process of semiconductors. This news comes amid increasing tensions between Huawei and the US government, which has imposed a series of sanctions on the company in recent years. According to UDN, Huawei has filed a patent that covers the entire EUV scanner with a 13.5 nm EUV light source, mirrors, lithography for printing circuits, and proper system control. While filing a patent is not the same as creating an accurate EUV scanner, it could enable China to produce a class of chips below 7 nm and have a homegrown semiconductor production, despite the ever-increasing US sanctions.

The development of EUV scanners is a significant milestone for Huawei and the semiconductor industry. However, the company's progress in this area may be hindered by the US government's sanctions, which have limited Huawei's access to certain technologies and markets. It is important to note that Chinese SMIC wanted to develop EUV fabrication based on third-party EUV tools; however, those plans were scrapped as the Wassenaar agreement came into action and prohibited the sales of advanced tools to Chinese companies. Huawei's development could represent a new milestone for the entire Chinese industry.

As we're nearing the end of 2022, there is more news about layoffs and this time around it's Micron that is looking at laying off some 10 percent of its workforce. The company announced its FQ1 '23 earnings today, or fiscal quarter one 2023, since not all companies follow the standard year when it comes to financial reporting. Micron saw revenues of US$4,085 billion for the quarter, down from US$6,643 billion in the previous quarter and down from US$7,687 billion the same quarter a year ago. However, the company made a net loss of US$195 million.

Micron's CEO Sanjay Mehrotra stated "Micron's strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn." These decisive actions include cutting 10 percent of its workforce according to Reuters, although this won't take place until sometime in 2023. Micron is also planning a cut in its CAPEX plans for its fiscal 2024, i.e. the company won't be investing as heavily as planned in new fabs, despite being granted money to do so by the US government.

Fortnite maker, Epic Games, has on Monday reached a settlement in court in an investigation by the US Federal Trade Commission (FTC), to pay a total of 520 million US Dollars in fines. This fine is because Epic deployed shady tactics of manipulating children into purchasing Fortnite V-bucks, skins, etc., without proper consent forms and purchase order confirmations. Even with millions of complaints from parents, Epic decided to proceed with its tactics and used dark patterns that deceived the original intent. Thus, the FTC has made a case that this violates the Children's Online Privacy Protection Act (COPPA) rule, and Epic Games will have to pay the fine.

The fine is consists of two separate causes. The $275 million monetary penalty for violating the COPPA Rule—the largest penalty ever obtained for violating an FTC rule, and the $245 million to refund consumers for its dark patterns and billing practices. The refund fine is FTC's most considerable refund amount in a gaming case and its most significant administrative order in history. Epic said, "Over the past few years, we've been making changes to ensure our ecosystem meets the expectations of our players and regulators, which we hope will be a helpful guide for others in our industry. " The official statement is far longer, and you can read about it here.

The feared import tariff increase that could've taken place in the US in the new year, has been pushed thanks to the Office of the United States Trade Representative (USTR). As such, graphics cards won't see a price hike in the new year, alongside a range of other products in 352 different categories, which also includes other types of PCBs and computer hardware. The tariff exclusion is known as Section 301 and was supposed to run its course by the end of this year, but will be extended for another nine months.

As to what will happen after the nine months extension, is anyone's guess at this point in time, as the USTR is having a review of the effectiveness of Section 301. The USTR has already had a first review, where parties that have benefitted from the tariffs have been able to leave feedback, early next year, parties that have been opposed to the tariff will also be able to leave their feedback. After the review, it'll be up to the US government to decide the future of the tariffs imposed against Chinese made products. This could lead to even more expensive computer components in the future in the US, but for now, nothing will change.

Global market intelligence firm TrendForce states that Chinese memory manufacturer YMTC is now at risk of exiting the market for 3D NAND Flash products by 2024 following its formal placement on the Entity List of the US Commerce Department on December 15. From this point forward, the Commerce Department will be reviewing and approving individual transactions related to the exportation, re-exportation, and sales of equipment, technologies, and other related goods from the US to YMTC. With acquisitions of equipment parts and technical support from its US partners becoming very difficult and prolonged, YMTC is going to be severely constrained from raising its bit output. Hence, its foothold on the market for 3D NAND Flash products is expected to weaken as time goes by.

TrendForce points out that without the support of the key equipment providers, YMTC is now facing a huge technical obstacle in the development of its latest 3D NAND Flash technology known as Xtacking 3.0. In particular, raising yield rate for the 128L and 232L processes is going to be extremely challenging for the Chinese memory manufacturer. Taking account of this latest escalation in the US-China trade dispute, TrendForce has further corrected down its projections on YMTC's supply bit growth rate and the total NAND Flash supply bit growth rate for next year. YMTC supply bits were initially forecasted to grow by 60% YoY for 2023. However, there was a massive downward correction that put its growth rate at just 18%. Now, YMTC is forecasted to post a YoY decline of 7%, which is a complete reversal from the earlier projections.