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Is there a reason beyond wafer shortages/scalpers for tech shortages?

CuddleheartCuddleheart Member UncommonPosts: 391
edited January 2021 in General Gaming
So, I know there's a huge bottleneck in the production of 7nm wafers at TSCM.  I also believe that this is a contributing factor to shortages of consoles and GPUs.  However, I was starting to ask myself if there are other reasons for this mass shortage?  After seeing ASUS announce that they couldn't hit production price points on GPUs without a 50% price hike in some cases, it really had me wondering.  Is ASUS just trying to milk that extra cash because it can or is an unsustainable game of price chicken partially to blame?  Is it possible that production is so slow because everyone rushed to market, despite knowing they couldn't hit production price points they needed, so as to avoid the optics of being left behind technologically or price-wise?  If so, is part of the hold up in stock due to them staggering production until they can get prices down and yields up?

Or am I way off base?  If it's just a production issue, how screwed is everyone going to be with the upcoming reduction in DRAM production? 

Comments

  • VrikaVrika Member LegendaryPosts: 7,999
    It's just a manufacturing capacity issue. There's no need to invent other theories when pandemic has driven up the demand, new product launches have driven up the demand, and lately crypto miners have also been driving up the demand.

    I bet that production is going well enough that we'll see both AMD and NVidia posting record profits when they release their next quarter results.
    [Deleted User]
     
  • WizardryWizardry Member LegendaryPosts: 19,332
    I am not really sure what your questions are asking,they seem like roundabout questions.

    Businesses have agenda and plan/scheme ways to over hype their products and get he highest price for them they can manage.

    Ask yourself how much competition is in the market,very little and any new idea be it a new console or a new gpu cpu or whatever has been planned long before it arrives.Point being these businesses have expectations and typically over rated expectations so you can bet there would be an abundance before there was a shortage.
    People can think of ideas like crypto mining to which i chuckled,you think these businesses are blind to what goes on around them within their marketplace?

    If they go through even one cycle of shortages they will regroup their planning and make sure next time they far exceed their need.

    This does not mean these businesses won't be up to no good and purposely withhold stock to drive prices,what you do know is you can't trust anyone in business and the gaming industry is just full of BS.

    Never forget 3 mile Island and never trust a government official or company spokesman.

  • UngoodUngood Member LegendaryPosts: 7,534
    Torval said:
    Crypto miners (Etherium) are buying up the GPUs. CPU and other parts are still available. The pandemic has affected manufacturing and supply chains.
    All that stuff is made in China, which has had near to zero effect from Covid.

    It's really all that Crypto-Nut Stuff and people buying up what they had, that put a burden on production.
    Gdemami
    Egotism is the anesthetic that dullens the pain of stupidity, this is why when I try to beat my head against the stupidity of other people, I only hurt myself.

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