NVIDIA's supply chain of its AI accelerators has reportedly witnessed a massive improvement as the firm reduces delivery times drastically.
NVIDIA's AI GPUs Delivery Times Reduced Significantly But Political Conflicts & Generational Lackings May Pose Financial Risks Moving Forward
The news comes from UBS analysts, who have claimed that NVIDIA's efforts to diversify their supply chain have finally started to work out, as the firm has now reduced the wait time of its AI GPUs from 8-11 months to 3-4 months. The reason behind this significant cutback in delivery times hasn't been disclosed yet. Still, Team Green has been working for quite some time now when it comes to upscaling its partners in the supply chain, especially with the inclusion of Samsung Foundry to manage the HBM department.
Apart from this, existing partners like TSMC and SK hynix have also rapidly expanded their production capacities, with TSMC reportedly reaching 32,000 units of CoWoS output by the end of this year, which is huge because at the start of 2023, this number is much lower. Moreover, the same situation has been in the firm's wafer output, which means that the global semiconductor supply is in a much better position compared to what it was a year ago.
However, not everything is rainbows for NVIDIA since the firm has seen a decline in AI consumer interest, not because of its products but because of the political situation the company has been dragged into. With the ban on exporting the firm's cutting-edge H100 and A100 AI GPUs to China, the firm has already seen a decline in sales since Chinese clients are a huge part of NVIDIA's overall revenue from the data center segment. With "harsher" restrictions being imposed, Team Green has been cut off, and the new "workarounds" they devised didn't get the attention needed.
Moreover, competitors like AMD and Huawei are also moving towards closing the gap with their existing offerings, which has impacted NVIDIA, even though not much as of yet. NVIDIA still retains its dominance over 90% of the AI market so it will be interesting to see how the firm copes with the situation since the firm can't be caught slacking at this stage.
News Source: MyDrivers
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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