Graphics cards are currently expensive and prices could rise even further. A manufacturer might increase the cost of a component. This will affect graphics card and processor manufacturers. GPUs such as the RTX 3080, 3090, RX 6700 XT or Ryzen processors from AMD may become more expensive.
Anyone looking to buy a graphics card right now knows the problem: the GPUs are either sold out everywhere or being resold at high prices by dealers or resellers. Scalpers have made over 15 million euros in profit from graphics cards. However, prices may continue to rise in the future due to rising costs.
What exactly is at stake? The Taiwan Semiconductor Manufacturing Company (TSMC) produces certain materials needed for semiconductor chips. These chips are used in almost all electronic devices. There are rumors (via Tweaktown.com) that the prices for the material could increase by up to 25%.
Where do the rumors come from? This information comes from the analysis firm IC Insights (via icinsights.com) based in Scottsdale, Arizona, USA. It specializes in studying the semiconductor market and has been dealing with prices and costs since 1997. The firm has focused on TSMC’s profits and developments.
Component prices to rise, affecting graphics cards, processors, and consoles
What could become more expensive? The manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) produces so-called wafers. These are discs made of high-purity silicon onto which circuits are applied in a complex process. Companies like AMD or Nvidia need these wafers to manufacture semiconductor chips.
Now, TSMC may apparently increase the prices for wafer discs. Reasons for higher prices at TSMC may vary. Currently, there is a significant water shortage in Taiwan, and TSMC requires large amounts of water for production (via Computerbase.de). Additionally, there are internal issues with overworked staff and the COVID-19 pandemic. All these problems are expected to affect the prices of the products.
Moreover, TSMC is likely switching from older chips to newer versions. As a result, the price of older models may also rise. Manufacturers typically pass such price increases on to end customers, who can be system builders or private individuals.
Are there not other manufacturers? TSMC is the third-largest semiconductor manufacturer in the world after Intel and Samsung. Furthermore, the company is the largest contract manufacturer for semiconductor products (via Wikipedia.de). Companies like AMD and Nvidia have chips manufactured for their graphics cards and processors.
Just at the end of 2020, there was a rumor that Nvidia would prefer to have its new chips manufactured by TSMC rather than Samsung (via Hardwareinside.de). AMD has been a client of TSMC for some time, having chips for Next-Gen consoles (Xbox Series X|S and PS5) produced there (via Winfuture.de).
What are the implications? This would be yet another issue at a time when semiconductors are already in high demand, presenting a challenge for those looking to buy a graphics card or processor. If this happens, prices for graphics cards and processors will likely rise.
If TSMC raises prices for its products, it could also have long-term effects on other products supplied by TSMC. Such price increases would not be surprising, as manufacturers like ASUS have already announced plans to increase prices for certain products in 2021.
Availability of graphics cards remains poor
Rising prices are likely to exacerbate the current shortage of semiconductors. Semiconductors are used in many other products such as cars, refrigerators, and smartphones. The poor availability is further intensified by the ongoing COVID-19 crisis.
That’s why even the possible launch of the RTX 3080 Ti in May 2021 leaves many gamers indifferent since the current graphics cards are already scarcely available. The Ti version of the RTX 3080 is said to be significantly faster than the standard RTX 3080 but offers less graphics memory.
