The possibility of increasing the price of the graphics card due to the high cost of GDDR6 memory

For some time now, there have been rumors about the possibility of an increase in the price of hardware components for personal computers, laptops and smart gadgets. In fact, the reason is the lack of semiconductor components, which has caused some products to become scarce in the market and the unveiling or supply of other products to be postponed to the future.

It was recently reported that AMD has postponed the introduction of RDNA3 for GPUs and Zen 4 for CPUs until late 2022 in order to focus more on its current products, and in fact the consequences of a shortage of semiconductor components. Leave behind.

Meanwhile, TechSpot reports that the price of DRAMs (dynamic random access memory) will probably increase by 8 to 13 percent by the end of 2021. In short, such news would mean that the price of graphics cards would also increase. The report also mentions the reasons for the increase in the price of DRAMs, which we will discuss below.

The first reason DRAMs are becoming more expensive is the significant increase in demand for graphics cards. In fact, many people, such as employees of large and small businesses, students, business owners, and others, have needed various equipment to continue their activities due to the outbreak of coronary heart disease around the world. This has led to a significant increase in demand for computer parts, accessories, laptops, smart gadgets such as tablets and smartphones.

Rising demand is now causing various companies to face shortages of semiconductor components, and some products that depend on such components are becoming scarce or even scarce in the market; An example is the problem with ninth-generation home consoles. On the other hand, Ramzarz miners are also very interested in graphics cards. Statistics show that a significant portion of graphics cards are purchased by miners.

On the other hand, Nvidia has a great impact on increasing the price of DRAMs. Nvidia is one of the largest customers of companies that make GDDR6 and GDDR6X memories. This causes manufacturers to prioritize Nvidia orders, and naturally, with the shortage of semiconductor components, smaller shares of memory production are made available to smaller companies. All together, the production capacity of smaller companies is reduced and such companies are forced to increase the prices of their products in order to survive in the market.

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Ninth-generation home consoles should not be overlooked either. Demand for the Xbox X Series and PlayStation 5 is such that ninth-generation consoles are not available in some markets. Pressure from Microsoft and Sony to provide the required inventory also makes DRAM companies prioritize the production of GDDR6 memory required for ninth-generation consoles.

The report also combines the situation in different markets, the amount of demand and also estimates the limited capacity of DRAM memory production, which estimates that by the end of 2021, the price of such memory will gradually increase, resulting in more expensive products in the market. . TrendForce reports that manufacturing companies are only able to meet 30 percent of their contracts, and that the cost of producing DRAMs has grown by 200 percent compared to previously estimated.

In the meantime, newer products are in short supply; But in older products that use GDDR5 memory, there is no problem in production or distribution. Both AMD and Nvidia have promised to increase graphics card production in the third quarter of 2021 to meet market demand. On the other hand, with the devaluation of currency values, the demand for graphics cards has decreased to some extent, which can help to better control the market and return it to equilibrium. Many analysts and senior executives at technology companies such as Intel believe that the market for technology-related components and equipment will not return to normal by 2023.

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