Component shortages have plagued the tech and gaming industries for a long while now and NVIDIA looks to be making moves so that these won’t be so severe for their highly anticipated RTX 4000 GPUs.
According to a report from Hardware Times, Nvidia is willing to pay TSMC (Taiwan Semiconductor Manufacturing Company) around $10 billion so it can secure a large portion of its 5nm manufacturing node. The price is considered necessary given that Apple, AMD and Bitmain are also competing for supply from TSMC’s 5nm manufacturing process, with Apple singlehandedly ordering 100 million ‘Bionic’ chips from the Taiwanese foundry. (Apple’s iPhone 12, iPad Air, 5G-enabled iPad Pros and future MacBooks and iMacs are all being built using the same manufacturing process.)
Hardware Times’ report cites rumors among the industry that Nvidia paid $1.64 billion last quarter to secure supply from TSMC, with a further $1.79 billion to be paid later this year. (Nvidia also confirmed that the company spent $9 billion last quarter on prepayments and “long-term supply obligations” in its latest earnings report.)
With this hefty price that Nvidia will have to pay to secure manufacturing, consumers could expect some of that to be recouped through more expensive GPUs. If Nvidia’s move staves off some of the supply issues that have affected CPUs and GPUs this year, however, it could help keep prices down. And there is some hope on the horizon: TSMC believes the supply shortages will improve from the second half of 2022, according to Hardware Times.