NVIDIA Limiting GPU Production Due To Excess Inventory, Could Lead To GeForce RTX 40 Price Cuts If Things Don’t Improve
Recent reports citing NVIDIA's GeForce RTX 40 price reduction and limited production may be due to excess inventories, claims a report by EETimes. According to an analysis by \research firm, Arete Research, NVIDIA is amongst the list of TSMC's Top fabless customers whose inventory far exceeds the 5-year industry average of 92 days.
When the recent NVIDIA GeForce RTX 4070 hit the market two weeks ago, the amount of inventory across the board, except for a few manufacturers' graphics cards, was packed on many retail shelves, whether online or in stores. NVIDIA has begun to sell the cards for cheaper to entice new and returning consumers, but it is not only due to the cards not selling fast enough.
TSMC and Samsung were previously on an increased path to be the first company to develop and manufacture the 3nm process technology for chips used in processors and graphics cards. TSMC recently acquired this goal, but not without problems. According to a report by EE Times, the semiconductor giant is struggling with "tool and yield" issues that are slowing the volume of production of 3nm-based chips to its customers, i.e., NVIDIA.
Our 3-nm technology is the first in the semiconductor industry to high-volume production with good yield. As our customers’ demand for N3 [TSMC terminology for 3 nm] exceeds our ability to supply, we expect N3 to be fully utilized in 2023, supported by both HPC and smartphone applications. Sizable N3 revenue contribution is expected to start in the third quarter, and N3 will contribute a mid–single–digit percentage of our total wafer revenue in 2023.
— C.C. Wei, Taiwan Semiconductor Co. CEO during a conference call with analysts
The report explains that over the last five years, "the industry's chip
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