Firstly Nvidia shareholders dictate margins must be at very mimimum 60% but I believe Nvidia could be pushing 80%. At 12nm, the prices they charge vs the wafers allows these large margins. The RX5700xt 251mm2 7nm chip performs inbetween the 12nm RTX 2070 445mm2 and RTX 2070 super 545mm2 (474mm2 core count adjusted for T-104 reduction).You really believe that Nvidia decided to release the latest generation (Turing) on TSMC's 12nm instead of TSMC's 7nm because they are "all done making GPUs for right now"? Come on, man.Whaaa..?
NO, Nvidia new chip is already being worked on. It takes years to design a chip and Nvidia just can't react to a new card on the market and come out with something, because of it. It doesn't work like that.
Nvidia is all done making GPUs for right now and is instead waiting another Year before releasing their new Ampere chip. There is nothing left in Turing for gamers except excessive prices and marketing gimmicks...
Nvidia's greed has left the market wide open for AMD and Intel to claim.
Nvidia hasn't moved to TSMC's 7nm because they can and don't have to. They have no competition at the top (ahem, AMD) and their offerings at 12nm have profit margins that are just fine.
What if AMD's 5700 XT had actually beat out the 2080 Ti? Nvidia can just do a die shrink of Turing to 7nm and easily beat AMD again. But AMD's newest offering, the 5700 XT, at 7nm can't even compete with Nvidia at 12nm, so Nvidia has zero incentive to do this.
Now if Intel's Xe is actually faster than RTX 2080 Ti, you can bet your booty that the 7nm die shrink of Turing will be out there pronto to one-up Intel. This is business chess 101.
So AMD with the far more expensive 7nm wafers, offers a chip that is roughly half the size in area, the same performance at a slightly cheaper price and it is a transitional design navi 10. Navi 20 will be the full architectural leap. If Nvidia right now makes a 7nm RTX 3070/super it cannot be in the 450-550mm2 range as it would be far too expensive as yields and wafer prices aren't down yet (reason why Ryzen is chiplets. Chiplets increase yield). They could get 2070/super performance at 7nm at in the 200mm2 range but look oh AMD is already doing that. At this point in time die size, cost and performance adjusted Nvidia and AMD are now equal which is a massive jump for AMD as Vega was poor and way behind Nvidia. Also tensor and RT cores don't take large percentage of the die so taking them out won't improve alot, which they won't as Jennsen has gone down this path and he can't u-turn now. Navi 20 will be competition for the RTX2080ti but I believe it's not top of their list with the server market, desktop CPU's, laptops, consoles and navi samsung being higher on their list as it makes more money.