Add-in board partners move graphics card manufacturing out of China to avoid tariffs

Greg S

Posts: 1,607   +442

A new round of tariffs were implemented adding a 10 percent fee on imports of more than $200 billion from China. In the sweeping tariff increases, graphics cards are one of the many tech items affected.

Both AMD and Nvidia are affected by the tariffs, although the true extent is still being determined. Buyers of prebuilt systems need not worry about any additional tariffs since they do not apply to complete computers at this time. Only graphics cards sold individually and manufactured in China are affected.

For now, the "vast majority" of graphics cards are still made in China. Bank of America's investment arm Merrill Lynch sent notice to clients that Nvidia's RTX line may see price hikes of 5 to 10 percent over the next few months. It is estimated that gaming segment graphics cards accounted for as much as 60 percent of Nvidia's sales in the third quarter. AMD's graphics division likely only made up around one-fourth of its revenue.

To counter the new tariffs, board partners are already looking at relocating to Taiwan and Mexico in order to avoid the added import fees in the US. Given that Nvidia and AMD are both fabless companies, choosing manufacturing partners outside of China for GPU dies will not be too burdening if either still even have substantial manufacturing going on there. Nvidia and AMD are both working with their partners to try and lessen the impact of tariffs, but neither provided specific details on how they are doing so.

In the official listing of product categories subject to new tariffs, "printed circuit assemblies" and "electronic calculating machines" could be where graphics cards fall into place. The trade office has yet to verify which category consumer graphics cards will be placed in.

Permalink to story.

 
D

davislane1

Fake news. I was told two years ago nothing would ever be moved out of China.
 

Bluescreendeath

Posts: 239   +336
An extra 5-10% is a pretty steep price hike on $400-$1,250 cards.

We're paying more and no new American jobs have been created. Best of both worlds?
Anybody who buys those overpriced RTX cards can afford a little 5-10% hike. Just like Apple fans who pay 800-1k for an iphone would not bat an eye for a 50 dollar I-adapter cable.

Also, I don't think the immediate purpose is to create jobs, but to change the current trade relationship with China.
 

cliffordcooley

Posts: 12,646   +6,028
I think we should find out who is paying for game micro-transactions and give them a 50% tariff tax. Especially those that spend thousands on a game. Just so they can stay on top and ruin the experience for everyone else. They may even be the very same people that wouldn't fuss about a 5-10 percent tariff on these cards.
 

Lew Zealand

Posts: 1,718   +1,820
Stop whining! Did y'all got a tax break to cover your new AIB, oh wait minute that's only apply to top the earner to see any significant difference.
Who can then afford $400-1200 graphics cards. So Nvidia will do just fine, not to worry.
Buy more NVDA!
 

Nero7

Posts: 498   +236
"For now, the "vast majority" of graphics cards are still made in China."

One has to wonder if the West produces anything at all anymore. Heck, the Brits used to rule over China. All the people critizising Trump refuse to see the bigger picture. It is desperately needed to put China in their place, or else, they'll be putting us in ours.

One could see an opportunity for American or European made graphics cards but nooo.
 
  • Like
Reactions: cliffordcooley

pcnthuziast

Posts: 973   +639
If the Ti were at the current price point of the non and the non were around 75% of that, they'd gross more profit off volume. Taking other variables out of it, I guarantee Nvidia is gouging on top of that and enjoys greater margins and gross than their comp. Same with Intel, but I believe the green team is unironically the green team.
 

CybaGirl

Posts: 43   +21
Also, I don't think the immediate purpose is to create jobs, but to change the current trade relationship with China.
Yes. I totally agree with this. I think our dependence on China for manufacturing everything this days is a real problem and why so many countries are in debt to them. I was reading the other week where one country. Sorry can't remember where it was perhaps Vietnam? They owe so much to China that the Chinese have taken possession of part of the country to pay back the debt that they owe to the Chinese and the people of that particular country are not even permitted to access that area anymore.

So hows that for the start of taking over the world?