According to a recent report by DigiTimes, Nvidia may be taking a strategic approach with its latest GeForce RTX 40-series GPUs based on the Ada Lovelace architecture. The company’s backend service providers, Siliconware Precision Industries (SPIL) and King Yuan Electronics (KYEC), have reportedly not seen increased orders for testing and packaging of the new GPUs. This suggests that Nvidia is waiting for its partners to sell off remaining GeForce RTX 30-series inventory before supplying them with the latest generation graphics chips.
Ada Lovelace GPUs Covering All Market Segments
Despite having introduced an extensive range of Ada Lovelace GPUs for client applications, including the AD102, AD103, AD104, AD106, and AD107, Nvidia has not signaled to its OSAT providers to scale up production for the GeForce RTX 40-series. The company had previously pre-paid TSMC for silicon manufacturing services during 2021-2022, and likely has N4-based Ada Lovelace wafers in stock. However, it still needs to book OSAT capacity before ramping up orders to increase supply.
Demand for New PCs Slowing Down
With reports of a severe downturn in PC and laptop sales, many people and businesses may be opting to stick with their current systems amid economic uncertainties. However, as this information comes from an unofficial source and lacks many details, it should be taken as a rumor rather than a confirmed fact.
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Ada Lovelace GPUs in Stock, Waiting for OSAT Capacity
Nvidia’s backend service providers are reportedly not seeing the increased orders for testing and packaging of its latest GeForce RTX 40-series GPUs based on the Ada Lovelace architecture, says DigiTimes. They believe that the company is taking its time and letting its partners sell off any remaining GeForce RTX 30-series inventory before supplying them the latest generation graphics chips.
No Intention to Increase GeForce RTX 40-Series Output
According to the DigiTimes report, Nvidia appears satisfied with the current GeForce RTX 40-series output and has not shown any intention to increase it. While the company should be booking OSAT services now, it seems that Nvidia prefers to wait a bit before further ramping up testing and packaging of its Ada Lovelace silicon.
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Market Impact and Future Prospects
The decision to delay boosting the production of RTX 40-series GPUs may not have significant consequences for the market, considering the current slow demand for new PCs. Nvidia’s strategic move could help partners clear their remaining RTX 30-series inventory while ensuring a smooth transition to the latest generation of graphics chips.
As Nvidia eventually increases the supply of RTX 40-series GPUs, it is expected that more consumers will have access to these advanced graphics cards, leading to a potential increase in demand. However, it remains to be seen whether Nvidia’s cautious approach will pay off in the long run and how it will affect the graphics card market dynamics.
In conclusion, Nvidia’s decision to hold off on increasing the production of the RTX 40-series GPUs appears to be a calculated move. While the market impact is likely to be minimal, given the current slowdown in PC sales, it highlights the company’s strategic thinking as it navigates the ever-evolving landscape of the graphics card industry. As always, it is essential to approach these reports with caution, as unofficial sources and unconfirmed information can sometimes prove to be inaccurate. Nonetheless, the situation merits close observation as it unfolds, providing valuable insights into the industry’s trajectory.