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AMD preps 10 % GPU price rise amid memory-chip shortage (www.guru3d.com)

submitted 13 hours ago by alessandro@lemmy.ca to c/pcgaming@lemmy.ca

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[–] FauxLiving@lemmy.world 1 points 8 hours ago* (last edited 8 hours ago) (1 children)

It’s not a shortage if production is normal but some greedy assholes keep buying them all. It’s a racket.

Your entire premise is built on “if production is normal” and yet in the 2nd paragraph of the article (which you read, right?) it says that production isn’t normal.

Manufacturers are intentionally not ramping up to increase production to follow the demand because of the bubble risk.

So, the price increase is created by a supply-side problem because production isn’t normal.

The supply-chain disruption centres on memory devices—especially those used in graphics-cards and AI-accelerated systems—where manufacturers remain wary of ramping up production after past crashes. The result: constrained supply, elevated costs, and a decision by AMD to transmit some of that burden across its GPU product lineup.

[–] NichtElias@sh.itjust.works 3 points 8 hours ago (1 children)

The way I'm reading it, the supply is only constrained relative to the increase in demand. The article isn't really clear on the matter, so it can be interpreted both ways

[–] FauxLiving@lemmy.world 1 points 7 hours ago

You're exactly right.

The unusual thing here is that production is not following demand.

It isn't the case that RAM manufacturers are unable to buy more RAM manufacturing equipment. They're simply choosing not to invest in new RAM manufacturing equipment because, collectively, they seem to agree that the demand is a bubble which will collapse before the investment will break even.

Since that sector typically targets a 3-5 year payback window, it means that the market is not expecting demand to continue rising long-term.

The article is simply AMD pricing the bubble uncertainty into their product. We'll likely see the Steam Machine have a similarly inflated price (and also due to tariff uncertainty)