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NVIDIA wants to cut orders with TSMC for next-gen 5nm RTX 40 GPUs

NVIDIA reportedly scaling back 5nm wafer orders for next-gen GeForce RTX 40 series GPUs with TSMC... lower demand, more blamed.

@anthony256
Published Jul 1, 2022 4:12 AM CDT   |   Updated Mon, Jul 25 2022 2:33 PM CDT

TSMC is seeing its 3 biggest customers revising their orders all at the same time: AMD, Apple, and NVIDIA for their next-gen RDNA 3, iPhone 14, and Ada Lovelace products, respectively.

NVIDIA wants to cut orders with TSMC for next-gen 5nm RTX 40 GPUs 01 | TweakTown.com
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NVIDIA is the big one that we'll tackle in this article because they're in a real precarious spot: NVIDIA has been bedding Samsung for a while now, leaving the South Korean arms for the arms of Taiwan and back to its old faithful: TSMC (Taiwan Semiconductor Manufacturing Company) for its next-gen Ada Lovelace GPU architecture and upcoming GeForce RTX 40 series graphics cards... well, they've hit a snag.

According to the latest report out of DigiTimes and translated by @RetiredEngineer on Twitter: "Faced with abrupt drop-off in PC demand and customers' inventory adjustment, AMD and NVIDIA has no choice by to reduce orders".

If you remember, late last year NVIDIA coughed up big money to TSMC to ensure that they had enough wafers for their next-gen Ada Lovelace GPU architecture... and now, things are getting rocky. NVIDIA has a boatload of leftover inventory from the cryptocurrency prices dropping, leaving crypto miners out in the cold.

Lots of NVIDIA GeForce RTX 30 series graphics cards, with nowhere to go... no customers to sell them to... in a harder economic time and no true reason to really upgrade right now. RetiredEngineer continues, saying that "along with enormous channel inventory and used GPUs dumped into the market by miners, wants to cust orders for the next-generation 5nm RTX 40 series".

But this bit: however, TSMC is unwilling to make concessions.

The only concession TSMC is willing to give NVIDIA is by allowing them to delay the first shipments by 1 quarter, or shift them into Q1 2023. But, NVIDIA would then be responsible for finding replacement customers for any vacated production capacity.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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