The graphics card market is currently very bad and chaotic when it is always sold out, and if so, their prices are also sky high. With the upcoming price of GDDR6 memory increasing, the price of graphics cards will be even more “galloping”.
According to “bad news” from TrendForce, the price of graphics DRAM is expected to increase by 8% – 13% this year. That will obviously push the retail price of graphics cards even higher.
There are four main factors behind this price increase, the source explained. The first and second reason is the unprecedented demand for graphics cards, combined with chip shortages, cryptocurrency miners and speculators, making the situation worse. .
Another factor comes from NVIDIA. Naturally, NVIDIA is one of the biggest customers of the GDDR6 and GDDR6X companies. With the use of DRAM in many of its GPUs, it is clear that vendors will prioritize NVIDIA over small customers in allocating production capacity.
In addition, contract manufacturers responsible for supplying the latest console chips to Sony and Microsoft, which are equipped with 16GB of memory, are also being prioritized. DRAM for servers is also prioritized for production.
“As different products jostle for limited DRAM production capacity, graphics DRAM contract prices are expected to increase in the future. Especially when small and medium-sized OEMs/ODMs may face double-digit percentage increases.“, the source stated.
TrendForce added, the qualifying rate for production for small and medium customers is about 30%. That explains why the delivery price of a graphics DRAM product is sometimes up to 200% higher than the contract level. Of course, as the value of some cryptocurrencies falls, so does the delivery price for GDDR6 products, but still nearly 100% above the average contract price.
Interestingly, GDDR5 is not affected much. There is almost no difference between the spot price and the contract price as it is mainly used in older models of graphics cards like the GTX 1650/1660.
AMD expects to be able to increase its GPU supply in the third quarter, and NVIDIA will try to do the same. With the value of many cryptocurrencies falling, we can expect the situation to improve by the end of the year.
However, some manufacturing giants have warned that this will not happen until 2023. So, this is not a reasonable time for us to install a new PC. And if you want to buy a console to play games, don’t forget that both Sony and Microsoft are pessimistic that this year there are not enough consoles to ship.
Le Huu (according to TechSpot)