GeForce RTX 4000, a problem for NVIDIA? The company would like to cut orders

NVIDIA could have done the so-called “step longer than the leg“According to reports from the Taiwanese newspaper Digitimes (via RetiredEngineer), the US company would like review the order made to TSMC for next-generation 5-nanometer GPUs intended for GeForce RTX 4000 series video cards.

The designer would have booked a high production capacity at 5 nanometershowever, anticipating several billion dollars, but the market reality after years of fat cows would seem to have deflated with the collapse of cryptocurrency mining and the burden of inflation on consumers’ pockets. To exacerbate the situation the high existing inventory (RTX 3000) and the thriving second-hand market powered by decommissioned cards from miners.

Thus, according to rumors, NVIDIA would have knocked on TSMC’s door to review agreements: the Taiwanese foundry would indeed have proven itself reluctant to make concessions, offering the partner a difficult way out. There are two options: number one would include the delay of the first delivery of a quarter (from Q3 to Q4) or at most to Q1 2023 in order to manage existing inventory. As a result, the new cards could slip, giving the competition a possible advantage.

The second solution, again according to the Digitimes, would see TSMC willing to accept order review only if NVIDIA finds alternate customers able to fill the productive void created. A very difficult undertaking given the slowdown in the industry.

Either way, NVIDIA wouldn’t be the only one in such a situation e even AMD would have been forced to limit wafer orders to 7-6 nanometers to about 20 thousand units in total for Q4 2022 and Q1 2023. The company led by Lisa Su would not have changed the volume of orders for PC and server chips at 5 nanometers: we recall that AMD will produce chiplets at 5 nanometers. at the heart of Ryzen 7000 processors, EPYC Genoa as well as GPUs based on RDNA 3 architecture.