Future CPUs and GPUs will be even more expensive

According to a report by DigiTimesit seems that TSMC’s 3nm wafers will be very expensive and, consequently, will drive up the prices of next-generation CPUs and GPUs.

The report said that due to its dominant position in the chip manufacturing sector and the lack of competition in the 3nm process segment, TSMC will significantly increase the prices of its wafers.

Future CPUs and GPUs will be even more expensive 2

The graph above shows the price increase as you move through the various nodes.

With 3nm, TSMC’s wafer costs are expected to exceed a record US$20,000, which would mean we are set to receive much more expensive next-generation CPUs and GPUs.

AMD and NVIDIA are currently just two of TSMC’s major customers, along with Apple and many others.

NVIDIA has definitely raised the prices of its cards in the high-end segment, not surprisingly, speaking of Founders, if the RTX 4090 costs almost 10% more than the RTX 3090, the RTX 4080 costs over 70% more than to the RTX 3080.

It is public knowledge that the CEO of NVIDIA visited Taiwan to talk to the CEO of TSMC about this reckless increase and try to find a compromise by reducing, among other things, orders.

AMD has been able to offset the price by mixing and matching different nodes on its chiplet-based products.

The Ryzen, Radeon and EPYC lineup use both 5 and 6nm to reduce the overall costs typical of monolithic dies, while Intel will simultaneously leverage TSMC N5 and N3 nodes for its 3D Foveros chiplet architecture targeting Meteor Lake and Arrow Lake.

However, the absence of real competitors for TSMC will allow for a sharp increase in prices for each generation of wafers without any resistance.

With the sharp increase in production costs, the chip industry is bound to pass the burden on customers and consumers, and rest assured, the price of new finished products will never go back.

This dependency means that TSMC will remain in a dominant position and tend to justify higher prices with its technological advantage over others.

Rival Samsung had also stated that it would start mass production of its 3nm node (GAP) by 2024, however things don’t look so good as yields are less than 20% and there are still many problems.

Until a competitor on the same level as TSMC arrives, we can’t expect anything good in terms of pricing.

Intel has said that one of its goals is for chip makers like NVIDIA and AMD to have their products manufactured in its factories of imminent finalization, we’ll see how that turns out …


Source: Nexthardware All by www.nexthardware.com.

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