CPU and GPU prices set to increase amid TSMC wafer price hike

silversea

Posts: 43   +66
I know I am just dreaming when I say I would love to see TSMC get caught holding the bag on this, what I mean is TSMC raises their wafer prices, and once they do that nobody buys from them and their inventory sits unused, I could only hope and pray something like that happens that would put them in their place. Only dreaming out loud
 

kiwigraeme

Posts: 546   +421
Hard drive prices last decade were a textbook example of taking advantage of a crisis to do some price fixing... after the dust (or waters in this case) had settled, prices took a lot longer than they should to come down.
Yeah that one was not conducive to my argument - but I did say a longtime . plus maybe the price was crazy low ( I remember wow - and brought quite a few ). Thing is a lot of Fabs coming in the next 5 years - everyone will have that console if they want it - maybe pc sales flatten - so relying on cars & new tech I lots of areas .
Also with Apple leading the way - maybe a boom in efficient laptops , tablets and phones , chrome/linux laptops . The commercial sector will grow to extract the most profits out of us
 

Achaios

Posts: 207   +560
Starting to wonder if we will ever get back to normal when it comes to prices.

Starting to think anything under the 500$ market is basically dead

Apparently not b/c whales and/or miners keep buying any and all GPU's they can get their hands on at any price, GPU's keep flying off the shelves and prices stay high.

There's one guy who posts in this forum and claims not to mine who, alone, bought five (5) RTX GPU's.

If whales go out and spend $10k on 5 GPUs just b/c they can, there's obviously no end in sight to this situation, to say nothing of miners who continue to buy GPU's by the palette of 100.
 

Sausagemeat

Posts: 790   +610
I desperately need a GPU. Currently all thats available at anything close to MSRP where I live is a 6600XT but my CPU is only pcie3.0 so I dont want to lose out on performance because of the 8 lanes thing, also I want ray tracing and as far as I am aware Radeon still cant do that. Tbh I have had a lot of problems on Radeon in the past so I want to wait until Geforce cards are available again. I think I just need to accept that its going to cost me like $1000 regardless and just pay it and get it over with.
 

HardReset

Posts: 1,264   +926
If we consider how few companies can even make processors and that are all simultaneously having the same issues well, we have a name for that and it's what I've been saying all this time: PRICE FIXING.

Hard drive prices last decade were a textbook example of taking advantage of a crisis to do some price fixing... after the dust (or waters in this case) had settled, prices took a lot longer than they should to come down.
When market has shortage of something, prices will go up. That's how it goes. When demand exceeds availability, prices go up even without any cartels. There is absolutely no need for price fixing.

Anyone with enough money can put up semiconductor fab. Anyone with enough money can put up HDD factory. Why there are just now so few semiconductor factories? Because they were considered to be not profitable enough. Now, prices go up, profitability go up and quite soon there are much more semiconductor fabs. What happens then? Better availability means lower prices that also means profitability goes down. Figure out what happens then.

There is no price fixing for semiconductors. There were no price fixing for HDD's. Even without price fixing prices go up so why bother?
 

gamerk2

Posts: 600   +524
Well what could one expect? You cant print half of ALL CASH in circulation in 18 months and not expect hyperinflation to come. Welcome to the 1970's stagflation, or worse, weimar germany.

And dont think consoles will be the gateway out. Expect them to be pushing $1000 next gen.

Please, the rate of inflation is already slowing (as expected), and again: 3% inflation against 6.5% GDP growth is better then the 2% inflation against 2.5% GDP we've been getting for decades. And surprise: Worker wages are rising to largely offset inflation (though obviously this is somewhat industry dependent).

You're just seeing the results of pent-up demand as things start to come back to normal. Once the current demand glut works it's way though, inflation will taper off (which it's already doing).
 

gamerk2

Posts: 600   +524
When market has shortage of something, prices will go up. That's how it goes. When demand exceeds availability, prices go up even without any cartels. There is absolutely no need for price fixing.

Anyone with enough money can put up semiconductor fab. Anyone with enough money can put up HDD factory. Why there are just now so few semiconductor factories? Because they were considered to be not profitable enough. Now, prices go up, profitability go up and quite soon there are much more semiconductor fabs. What happens then? Better availability means lower prices that also means profitability goes down. Figure out what happens then.

There is no price fixing for semiconductors. There were no price fixing for HDD's. Even without price fixing prices go up so why bother?

Pretty much this. That's why there isn't a ton of demand (outside of governments) to increase fab capacity, since doing so is both expensive and reduces corporate profits.

Besides, per supply-side theory we should all be benefiting as we're getting a share of those sweet corporate profits.
 

SixTymes

Posts: 159   +104
Every time inflation occurs in the US, it reverberates out affecting all markets. Some companies then use inflation as an excuse to make more profit. this happened in 2009, and again in 2011. enjoy less money in your pocket, and enjoy the price of groceries. thank a democrat for the world wide inflation, again.
 

Sausagemeat

Posts: 790   +610
They can, but the performance is worse than on Nvidia.

Then again, if you're aiming for mid-range card, the raytracing performance will be lackluster regardless.
My friends PC with a 2070 super handles loads of games with ray tracing on at over 60 fps just fine. Cyberpunk, control, minecraft, metro enhanced etc. It’s a lie that mid range RTX cards have poor ray tracing performance.
 

Ludak021

Posts: 546   +394
Good on them - not only shipping costs - probably having to pay more for workers , water , covid compliance etc - as a consumer these things seem to even out - except where companies try to define a new normal - eg flagship phones( I' still pay $200 to $300 ) . Memory had crazy cycles .
After the Thailand floods, Japanese fire - Hard drives when through the roof - took a longtime to come down - TBF it has been offset by more reliability .
These are only a proportion of final products - those manufacturers will have other higher costs as well .
But as stated above PC game hardware sellers competing with Consoles - but doesn't end there . As competing with all human activities - ah screw this - I'll just buy that mountain bike/surf board , tabletop game

You are confusing Taiwan and US. You think workers at TSMC wear masks? Maybe some do, but those always did because they work in the clean room. Water? They have ocean next to them. And yes, they also complained about the lack of sand.

Truth is: they are price fixing, they don't have any big problems. They are lying.
 

kiwigraeme

Posts: 546   +421
You are confusing Taiwan and US. You think workers at TSMC wear masks? Maybe some do, but those always did because they work in the clean room. Water? They have ocean next to them. And yes, they also complained about the lack of sand.

Truth is: they are price fixing, they don't have any big problems. They are lying.

It's not you buying from them - it's the big boys - Ford, Intel, Apple etc - let's have a cry for them - If you think there is no an increased cost of finding more staff - training , less down time to sort things out .....
Apple, Intel , Ford, AMD are not giving you a sweet deal and are making cream .
As for comments about Taiwan/USA - How are workers rights in the USA ??- That's right - the lowest in the western world - anything else is communism - it a mega corp can't abuse people it's communism - if they can not get lots of tax breaks and subsidies - it's communism . If they can offload all their pollution onto the public purse -it's communism .
So a USA companies can make cream - but a Taiwanese can not - because the exist for us to export our wastes ( rare earths china - cost of cheap production ) and use their cheap labour . Turkeys voting for thanksgiving
 

Ludak021

Posts: 546   +394
Their (TSMC) chairman worked in US and is well aware of human rights, yet he ignores them because that's the profitable way. It has nothing to do with governing system, it has everything to do with what you can get away with.