NVIDIA recently announced that gamers will face graphics card stock issues in 2021.
NVIDIA has released a statement addressing issues with GPU supply and production. The company’s CFO, Colette Kress, announced at NVIDIA’s annual investor day earlier this week that the problem with graphics card inventory will continue through 2021.
The company’s CEO Jensen Huang has made many statements about the GPU shortage, which has been ongoing since the launch of the GeForce RTX 30 series. In addition to shipping and logistics, the component shortage is also leading to an insufficient supply of next-generation graphics cards, resulting in price increases at various retailers, the company said. At the same time, the explosion of interest in cryptocurrencies can be cited as another reason for these price increases, as cryptocurrency miners buy large quantities of gaming graphics cards and the number of graphics cards that can be purchased for real PC gamers decreases.
The biggest factors causing low production are the lack of raw materials, outsourcing, conditions created by the epidemic, and the resurgence of cryptocurrency mining. At the same time, we can say that another factor that does not affect production but does affect the price is the lack of duty exemptions. This even leads hardware manufacturers to increase the price of their components.
The first three factors can be combined as resources and outsourcing go hand in hand. However, we can also see that the pandemic process limits the production process. NVIDIA is described as a fabless semiconductor developer. This means that the company does not have the capacity to manufacture on a large scale. The company relies on TSMC and Samsung to produce GPUs. Due to the conditions created by the pandemic, the production bottleneck of these companies returns to NVIDIA as a shortage of raw materials.
The company is trying to give some of its production back to PC gamers by taking various measures, such as limiting the crypto hash ratio on new gaming graphics cards and introducing CMP series GPUs geared towards crypto mining. However, this doesn’t seem to have worked out for NVIDIA, as the very high retail prices of CMP cards are not in the interest of crypto miners. At the same time, CMP cards do not offer the same benefits as a gaming graphics card. Even NVIDIA’s older generation GeForce cards offer a much higher hashrate at a lower price than CMP cards.
In conclusion, NVIDIA is working to change the situation in favor of gamers, but the current situation doesn’t seem to change before 2022.