Computer

Good news! Graphics cards won’t go up in price (for now)

If a few days ago we told you about the end of the exceptions to the taxes on products imported from Asia to the United States and how they will affect the rise in prices of graphics cards in 2023, now we have the good news and it is no other. that political interference will delay the measure for a few months, which will be good for both the sector and the users. However, we wonder, how long will this “goodness” last?

The rise in costs in the manufacture and design of new chips has become a problem in recent years for the entire sector. And things get worse if we add that buying the hardware becomes even more expensive if we add additional political costs. Which are always sold with the excuse of the common good, but then do not translate into what they promise. What they do translate into is price increases and the problem is that there is a problem that certain products become too expensive and stop making sense for the user. It may also be that they remain in price, but that is less margins and, therefore, less justification for their existence.

There will be no price increase in January 2023

Well yes, the application of the US import tax that was to be applied from January next year has suffered a delay of nine months. Interestingly, the only companies affected by the sector are those that are Fabless and therefore make their chips in foundries like TSMC. That is, AMD and NVIDIA, but we can’t forget companies like Apple and Qualcomm making mobile chips either. All this in a series of policies in order to benefit an Intel that seeks to become the great American foundry and chip factory.

TSMC Factory Mass Production

The reality behind the tariff tax? Benefit Intel and other semiconductor manufacturers. Chip designers look for the best node, not only in specifications, but also in cost. Pat Gelsinger’s company for its Intel 4 node has not gotten the same support as TSMC with its N4 and N5 nodes. Not because they are rivals, but because regardless of the quality of Intel’s processors, their manufacturing processes were not originally designed to be competitive and sold to third parties.

And what does this have to do with import taxes and the price increase for graphics cards? Well are the incentive for TSMC to build factories in the United Statesto collect taxes, and give Intel a competitive advantage over its rivals, adding an extra cost. In other words, it is a collateral effect and with the blue company still not having its infrastructure for third parties well-oiled and ready, it is normal for the application of said tax to be delayed.

Good news for everyone

We very much doubt that this decision was taken due to the dates in which we find ourselves, however, we all know that the rise in prices would have affected us Europeans. Well, when the time comes, he will end up doing it. At the moment it can be said that what is presented at CES and that is going to be launched for next year is not going to be more expensive. Which, in times of crisis, is appreciated. However, it is a situation that will not last forever.

At the moment, even Intel has to make its graphics cards at its rival foundry. We doubt AMD will ever build anything at Intel, but going forward, we wonder if we’ll see any joint ventures between NVIDIA and Intel when the latter gets its manufacturing nodes mature enough to build large chips like the RTX 4090. .

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