Nvidia wants to cut orders for RTX40 series graphics chips due to demand drops

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Nvidia, AMD, and Apple are all cutting TSMC’s wafer orders, specifically TSMC’s 5nm process products. Potential reasons include the fact that global inflation levels are continuing to rise, the war has led to a recession, and people are placing less emphasis on new consumer electronics.

As far as Nvidia is concerned, the company is already facing the problem of excess inventory of RTX 30 series graphics cards and more mining cards entering the market, which puts a lot of pressure on the RTX 40 series.

TSMC customers revising order, Source: RetiredEngineer via DigiTimes

Digitimes said that Apple’s iPhone 14 series has been mass-produced, but Apple’s initial order of 90 million units has been cut by 10% to 81 million units. The A16 bionic chip used in the iPhone 14 series continues to use TSMC’s 5nm process, and Apple’s decision to cut orders will naturally have an impact on TSMC.

At the same time, AMD has also adjusted its 6-7nm wafer orders for next year, but the 5nm wafer orders for PCs and servers have not been adjusted. On the other hand, Nvidia has already paid in advance to obtain TSMC’s 5nm production capacity, but now Nvidia is facing reduced demand and therefore hopes to reduce the number of orders.
However, Digitimes reported that TSMC was not sympathetic. TSMC did not make concessions and would not allow Nvidia to directly cut orders, and could delay shipments at most. All TSMC can provide is to move the order to the next quarter, and Nvidia may also need to help TSMC find potential customers to replace some of the production capacity.

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