CPU component shortage predicted

Over the last couple of years we have seen a shortage of GPUs that made it very difficult to get a new graphics card at a decent price. the scarcity of components was an important factor that seems to be going to continue in one way or another, and everything indicates that it will go from having few graphics cards to few CPUs.

One of the largest suppliers of raw materials used to manufacture silicon wafers you are experiencing unexpected price increases, which will be passed on to its customers, including TSMC. Manufacturers are then likely to pass those price increases on to users to maintain their profit margins.

New CPUs will go up in price, most likely

The Japanese company Showa Denko is responsible for supplying chemicals and other materials in the early stages of the supply chain. Being so early on the assembly line, This is when the highest manufacturing costs are most often noticed. and therefore it is expected to be somewhat widespread. They've already seen a dozen price hikes so far this year, with more expected to be on the way.

The closures of plants and extractions due to contagion of COVID-19, the war in Ukraine and the weakening of the Japanese currency are the main factors. Showa Denko's CFO, Hideki Somemiya, that the price situation has caused unprofitable product lines to begin to be phased out, and that does not expect the situation to improve until sometime in 2023.

The current market forces them to double the price of raw materials. Both Samsung and TSMC have already notified their customers of the impending price hike. In the case of Samsung, a price increase of 20 percent is expected.

But it is not known how TSMC will act. Digitimes has reported that TSMC's three largest customers, which are Apple, AMD and Nvidia; they have already asked him to reduce his future wafer orders. This is very serious given that the plans they made so many years ago for their product lines are rarely scaled back. Everything is expected to start to be noticed in the second half of 2022, just as AMD, Intel and Nvidia look to launch their next-generation products. Thus, both the Ryzen 7000, Intel Raptor Lake and possibly the NVIDIA RTX 4000 may suffer a general price increase.