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Asus: Nvidia GPU shipments down again

Asus: Nvidia GPU shipments down again

At its latest investor conference on March 17, Asus executives revealed that Nvidia’s chip shipments were reduced in the first quarter of 2021 (Q1) compared to the fourth quarter of 2020.

For Asus Q1 2021 is worse than the last quarter of 2020 at Nvidia

As the company presented its Q4 2020 balance sheet, the outlook announced was not the most pleasing. From Asus’ experience, the GPU shortage got even worse earlier this year. For the company’s top executives called to speak, the supply shortage is mainly caused by Samsung Foundry’s poor performance in manufacturing Ampere graphics chips.

Asus Nvidia shortage

According to data from Jon Peddie Research Nvidia supplied about 9.1 million desktop graphics processors in the fourth quarter of 2020, about a million more than it shipped in the fourth quarter of 2019. Nonetheless, due to strong demand for PCs and graphics cards in the third and fourth quarters of last year, graphics card prices have skyrocketed simply because neither Nvidia nor AMD anticipated the increase. The result is an overall increase in graphics card prices as demand outstrips supply.

At the end of an uncomfortable tap dance, Asus executives didn’t try to sell a dream that the situation will improve soon:

“As for when we’ll be able to resolve this gap [between supply and demand], it’s really hard to say,” said a company executive. “We think the gap may have been caused by lower yields upstream. As for when [Nvidia] can increase that yield, it’s hard for us to predict.” To put it plainly, until the foundry in charge of Ampere chips improves wafer performance or increases production, nothing will change in the short term. The miners are an epiphenomenon that unfortunately adds to the overall picture.

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Edited by Calliers

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