AMD Radeon R9 Series in Short Supply – More Due to Lack of Components than Extreme Demand
Note: Updated section at the bottom of the post.
A very interesting report was published today by a reliable source. Apparently after talking with major Taiwanese graphic card manufacturers it was revealed that there is an apparent lack of components to go around and therefore no GPUs.
Big Part of the AMD Radeon GPU Shortage because of lack of Components, Not Just GPU Mining.
The source was Sweclockers and they talked to Three Major Taiwanese GPU manufacturers and reported the following. Before we begin, let me state a few things, the function of supply and demand is very relative and subjective to each firm. And so far, AMD’s lack of GPUs was associated solely to the excess of GPU Miners (Litecoin miners mostly) buying out all the mid – high end Radeons. However it has come to light that Major GPU manufacturers claim that they just don’t have enough ‘components’ to build more GPUs regardless of the demand.
Simply put, its not that they are producing on a maximum capacity and Litecoin miners are buying them all out. Their actual production is crippled because of lack of ASICs and other components. One argues that AMD failed to allocate sufficient volumes of semiconductors from TSMC, while others state that getting hold of critical components such as GDDR5 memory is becoming increasingly difficult. One even suggested that retailers are cautious while placing orders because of the volatile but apparently decreasing nature of the PC Market (He couldn’t be more wrong, but that is a debate for another time). He went on further to say that AMD also prioritizes other Markets over Europe, which I must admit is a very odd thing to say. It is also worth noting here that many markets that have a higher Electricity Tariff have not been affected by Radeon Price Inflation because it is unfeasible to mine there. Maybe this is what he meant when he said that AMD favors specific markets over Eu.
So this both good and bad news for AMD Gamers. Litecoin mining is bad enough for the casual gamer who just wants to play on his Radeon Rig, but add lack of raw materials to the assembly line and you have yourself quite a big problem. Already there have been instances of prices being as high as 200$ above MSRP and there doesn’t seem to be a relief in sight. But it appears that if AMD could somehow solve the lack of “raw materials” issue, Radeons would be available at reasonable prices once again.
Update: VisionTek has just confirmed the same problem of component shortage as well.
— Usman Pirzada (@usmanpirzada) February 7, 2014