Another increase in the price of Rade 6000 RXs? AMD reportedly raised the prices of all RDNA 2 GPUs by $ 20-40

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Bad news from the field of graphics cards. AMD is making its 7nm GPUs more expensive for card manufacturers, allegedly due to higher prices at TSMC.

As if there were not enough problems with the prices of graphics cards due to the bubble around the cryptocurrencies, the prices are probably increasing directly by their manufacturers. We don’t usually find out, but now the media has reported that AMD is currently raising the price of its GPUs – the chips themselves sold to card manufacturers. Higher production costs can lead to higher graphics prices, although they are happily more expensive on their own and do not even need help.

This information appeared on the Board Channels forum, according to which AMD decided that the prices of all GPUs of the Radeon RX 6000 generation will increase by some 10%. This is not the final price for the entire desktop card that concerns us customers, but the price of the encapsulated GPU itself without other components. Thus, the amount that card manufacturers pay for this central component in the production of Radeon graphics increases. This increase is expected to occur with the next deliveries of GPUs to manufacturers, so the cards currently being produced are probably still created from cheaper chips / ordered.

This increase is expected to make the cards $ 20 to $ 40 more expensive, which should not be a change in the final price, but a change in the total cost of production that the card manufacturer must bear. The reason for this increase, which was imposed on the AMD card manufacturer, is allegedly that the production costs increase for itself – the TSMC, where the chips are manufactured, has become more expensive. He raised the prices for one wafer that AMD gets charged. The rise in prices on the part of TSMC may also be caused by its production costs, but it may also be due to the fact that the company is simply busy and there are more customers than available capacity, which leads to higher prices in accordance with demand and supply law.

In general, if production costs (component prices) increase in this way, graphics cards should also become more expensive, so this news is negative for us and may mean a further deterioration in AMD Radeon graphics card prices on the open market.

Will the final price worsen due to costs? Or will it get worse because of something else?

On the other hand, a direct reaction to this increase in production at final prices may not come either. Prices now seem to be determined by market mechanisms, in particular high demand exceeding supply and the fact that scalpers, cryptocurrency miners and, ultimately, players are willing to pay up to twice as much prices for cards as recommended. Prices in stores have been significantly higher for a long time, and perhaps the increase in production prices will not affect them, or not as much as we would expect. The current insane amounts have long since decoupled from real production costs and are largely due to what someone else (a miner, a speculator or a player who has lost patience and no longer wants to wait for a hypothetical discount) is willing to pay. It is possible that the prices paid for graphics by large OEM manufacturers are more in line with real production costs, so AMD could probably increase their prices, which would affect us in the prices of gaming computers and laptops as well.

It is thus possible that this increase in GPU prices at AMD may no longer lead to an increase in card prices in stores. The bad news, however, is that instead of production costs, the already doubled (if not worse) prices can increase the described impact of the law of demand and supply in itself. In general, at the end of the year before Christmas, interest in computers and hardware is strongest and cryptocurrency prices are unfortunately still high – so conditions are unfavorable and Radeon prices are likely to worsen, although an immediate mechanism other than the increase is needed. TSMC and AMD.

However, if the prices of graphics suddenly began to fall, then this increase in the production price of cards could come into play and reduce the level at which the cards would fall. This could mean that prices will no longer be able to return to the original recommended amounts or at least not with the same margins.

For Ryzens, production costs should rise as well

This rising wafer cost is likely to affect or affect the production of Ryzen processors that use the same 7nm TSMC process. (and in fact, for about the same reason, the 7nm semi-custom APU for consoles will also become more expensive). However, there have been no reports of price increases on the part of AMD. And it’s possible that none will happen here either, as the Ryzen 3000, 4000 and 5000 processors produced on the 7nm process will now be under greater competitive pressure from Intel. The one with the arrival of your own 7nm Alder Lake processors eliminated AMD’s lead; it can no longer dictate arbitrary prices.

Tip: Megatest Core i9-12900K: Intel has it, Alder Lake will spin with the most powerful AMD processor

In turn, the final selling price in today’s situation is largely the law of demand and supply and not necessarily the cost of production. For processors, AMD may not be able to afford to pass on the increase in production costs to the customer and will have to take it from its deteriorating margin. However, there is an excess of demand over supply for GPUs, so AMD can afford to increase their price and keep their margins, because it still sells everything that is produced.

Source: VideoCardz