Nvidia is rumored to cut TSMC’s RTX 40 series GPU orders

In recent months, with the impact of inflation and the uncertain economic outlook, demand in the consumer electronics market is slowing down rapidly, and sales of products such as smartphones, PCs, and TVs have experienced varying degrees of decline. In response to changes in the market environment, major manufacturers have also begun to adjust production.

GeForce RTX 40 TSMC N5

According to DigiTimes, Nvidia, AMD, and Apple all intend to revise their orders at TSMC. Facing an oversaturated graphics card market and declining demand for next-generation GPUs, Nvidia is considering cutting orders for its GeForce RTX 40-series GPUs based on the Ada Lovelace architecture.

At present, NVIDIA’s partners have a large number of GeForce RTX 30 series graphics cards waiting to be sold. Although prices have been lowered, there are too many graphics cards in the used market, affecting shipments of stock products and making the outlook for GeForce RTX 40 series graphics cards grim.

TSMC is said to be reluctant to accept production cuts but agreed to delay deliveries until the first quarter of 2023, which means Nvidia will delay the release of new products.