On 5th December 2020 during the Credit Suisse 24th Annual Technology Conference, Colette Kress, CFO of Nvidia acknowledged the global shortage of the RTX 3000 series. He went into some details about the reasons for the shortage as there have been several reports on what is causing such a crisis. Colette revealed in front of the media that wafer yields are not the only reason behind the global shortage.
During the webcast of the conference, Colette also mentioned that the production yield of Samsung 8nm nodes is one of the prime reasons for the decelerated rate of 3000 series production. Before this conference, Nvidia didn’t put any official statement acknowledge the global shortage of the RTX 3000 series.
Reason behind Nvidia GeForce RTX 3000
Colette Kress has given proper statements in the webcast regarding the shortage of the RTX 3000 series. Apart from revealing that the yield of Samsung 8nm nodes is one of the reasons for the shortage, other topics on the same group have also come up. Kress further said that the company is currently facing supply constraints that go beyond just the wafers and silicon supply. Some constraints are also in substrates and components but no details were discussed. The company will continue to work in this crisis and it believes that the demand will exceed supply in Q4 for overall gaming.
From what Colette said in the webcast it is clear that the low production rate of various components is one of the reasons the production rate of GPU has gone down. Till now, Samsung was the sole provider of Nvidia GeForce RTX 3000 series 8nm nodes. But, this is also having a negative effect slowing down the production of Nvidia. So, the company is looking for other options and most probably will get nodes from TSMC as well. It is better to keep more than one option in hand in a time of crisis.
Samsung or TSMC nodes
Many rumors and reports have spread earlier regarding Nvidia’s preference for using Samsung or TSMC’s nodes. But, it was only a few months ago that Nvidia confirmed the use of the Samsung 8N node for building Ampere second-gen RTX cards. The company said that it is replacing the TSMC 7nm node which was used for the initial Ampere GA100 GPU. Jensen Huang, CEO of Nvidia then announced that for the majority of its GPUs they will be using TSMC tech and for a small subset of graphics silicon production they have chosen Samsung.
On 1st September 2020, in GeForce Special event, Jensen Huang announced that the company decided to use Samsung’s 8N process for all the large Ampere RTX GPUs. Many reports said that with smaller Samsung-built process nodes, the new generation of GeForce chips will offer a huge amount of rasterizing performance. But, with the shortage of production, Nvidia probably will switch to TSMC again.
Why the shortage is taking place?
According to some experts, the reason behind the shortage is difficulties faced in logistics and supply chain. A report by Tom’s Hardware explains that most of the cargo space in the distribution system is taken up by the pharmaceutical supplies which have caused the shortage of supplies for the electronic division. We are in the middle of a pandemic and most of the attention is going to the pharmaceutical needs and their fastest transportation. So, this can be a very important reason why the delay has been caused in yield and production rate. Moreover, the COVId-19 vaccines are also getting transferred to so many places across the world. And, currently, that is the prime concern of every nation.
The demand for the GPU has already exceeded the supply. And, you might have also noticed that the stocks are vanishing in no time. Even if someone is lucky to get hold of the RTX 3000 series they are receiving an unboxed version.
Will it get better soon?
Kress mentioned that the situation will improve within a couple of months but still it is difficult to quantify what is the exact portion of the demand they can meet. The company will update further on this situation by the end of this quarter. Till then we just have to sit tight and wait when these GPUs will be in stock again. The pandemic has affected every field in the industrial sector and we have to overcome it.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more