Thursday, January 27, 2022

NVIDIA claims it can cool down the GPU shortages by mid-2022

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Nvidia believes it will be able to mitigate the GPU shortage to a large extent by mid-2022, as first reported by PCMag. Colette Kress, Nvidia’s Chief Financial Officer, said yesterday at the UBS Global MTM conference that supply will start to improve in the second half of 2022.

“The company as a whole will take the appropriate work to continue to procure more supply,” Kress said. She also said that Nvidia continues to increase supply during the shortage, “We’ve been able to grow quite well during this year, each quarter, sequentially growing. And we do continue to plan to do that for Q4.”

via Windows Central

However, there is some good news: “So, we believe we will be in a better situation in terms of supply when we look at the second half of next year,” Kress said.

Nvidia, according to Kress, has invested billions of dollars in long-term manufacturing capacity commitments. Unfortunately, Kress did not specify which fabs Nvidia worked with, but given Ampere’s reliance on Samsung’s 8nm nodes, we can assume Samsung was involved. Nvidia may have teamed up with TSMC to create the new RTX 2060 12GB, which still uses TSMC’s older 12nm silicon.

Despite the agreements, Kress notes that “long-term” supply agreements can take up to a year to take effect, implying that much of Nvidia’s increased wafer capacity will be phased in overtime. Nonetheless, Nvidia believes that by mid-2022, supply may begin to improve. According to Kress, Nvidia wants to lower the price of its graphics cards, but market supply will have to improve dramatically to meet demand, preventing the stock shortages that exist today.

However, according to Kress, it’s unclear when the graphics card market will stabilize and supply will fully meet demand. She said she’ll have to wait until after the holidays to see how inventory holds up, so even Nvidia won’t know if the market has stabilized until early next year.

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also read:

Apple is rumoured to be planning five more Macs for next year


Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.


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