As the gaming PC market continues to shrink, Nvidia, Apple, and AMD intend to lower the number of chips they purchase from TSMC. Because demand for Nvidia GPUs has been so high in recent years, you may have observed that it was tough to get your hands on one.
Nvidia must lower the number of 5nm chips acquired from TSMC ahead of the RTX 4000 series in order to prevent the opposite situation, now that cryptocurrencies have lost most of their value and second-hand components are flooding the market.
In spite of the recent bitcoin rollercoaster plummet, Nvidia’s decision to modify its mind wasn’t driven just by this event. Many countries throughout the world have seen interest in general technology decline as a result of rising interest rates and rising costs of living. Not only are gaming PCs included, but so are televisions, cell phones, and a variety of other electronic devices.
This choice isn’t only Nvidia’s, however. AMD has allegedly requested a reduction in their purchase of 7/6nm wafers by 20,000 following a fall in Ryzen CPU revenue due to Intel’s 12th generation, while Apple has followed suit following a 10% decline in iPhone shipments.
It’s not simple for Nvidia.
Team green may not be able to avoid its responsibilities that easily. Unless Nvidia can find new clients to fulfill its promises, it won’t be able to receive its money back from Samsung after all. This year’s shipments might be delayed until the first quarter of next year, according to TSMC.
Nvidia and TSMC may have to accept reduced revenue forecasts for the remainder of the year, regardless of the outcome of discussions.